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Analysts says the Xbox One too expensive

by William Schwartz

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In a laundry list of things that Microsoft got wrong with the reveal of the Xbox One, a higher price point could end up being their fatal mistake in the holiday 2013 shopping season.   When the company announced that the Xbox One would be priced at $499, it was already higher than what many analysts had predicted for the console.

The inclusion of a new Kinect camera with every console is a big reason for high price, and analysts are calling for the company to drop the price to stay competitive with Sony’s PS4.   A couple of different analysts have recently spoke out about the $499 price point on the Xbox One.  Earlier today, Rafi Mohammed told Bloomberg that the price of the Xbox One “is too high”, and that “it has the potential to really derail Xbox One for the upcoming holiday season.”

Mohammed’s suggestion?  Offer the Kinect as an “a la carte purchase”, meaning to offer it separately from the console itself.  That could be one way for Microsoft to get the cost of the system down, and more competitive with the PS4, which is priced at $399 and offering their PlayStation Eye separately.

Meanwhile, outspoken analyst Michael Pachter believes that Microsoft will be forced to slash the price of the Xbox One following Christmas.  According to his recent statements, “They’re [Microsoft] going to regret the decision because I think people are now going to talk up Sony as the winner,” said Pachter.  “The good news is Microsoft will cut the price shortly after Christmas – probably will,” speculates the analyst.

These two aren’t the only ones upset by the difference in price between the two systems.  Gamers have been vocal about the Xbox One $499 price point, and for many, it’s  a simple choice to buy the less-expensive console regardless of features, power, or other options.    Microsoft recently back-tracked on their previously announced stance on used games, DRM, and online check-ins policies, could they change the price for the Xbox One as well?  At least one analyst thinks so, but it won’t be until after the first run of Xbox One sales during the holiday season.

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