Microsoft is preparing a permanent price cut

Jan 6, 2015 14:08 GMT  ·  By

The Xbox One could get a permanent price cut to 349 USD / 349 EUR if the PS4 takes back the sales crown in the United States of America, at least according to games industry analyst Michael Pachter, who believes that the recent holiday bundle is going to make a comeback.

The Xbox One and PS4 have been engaged in a pretty bitter console war ever since their release back in November of 2013. Unfortunately for Microsoft, the Xbox One is the big loser, as it got dominated by the PS4 almost until November of 2014.

At that time, the corporation bit the bullet and rolled out special Xbox One bundles that were priced at just 349 USD/EUR, provided that they didn't have a Kinect sensor, or 449 EUR/USD, if they had the special device.

Results were very good, as Microsoft confirmed that the Xbox One was the best-selling console in the month of November, no doubt thanks to the temporary price cut.

An official price cut might arrive this spring

Now, after the bundle expired, the two consoles are on the same price level, and analyst Michael Pachter believes that Microsoft can introduce a standard price cut to just 349 USD/EUR in order to maintain an advantage.

If the PS4 once again starts dominating in terms of sales, the move is almost a certainty and might be combined with big upcoming games like Evolve or Battlefield Hardline.

"Microsoft will be first to blink, with a price cut to $349. Microsoft appears to hate being in second place, and its success with the $349 price point and bundles at holiday suggest to me that the first month Sony re-takes the lead, Microsoft will react and cut price again. That probably happens in January, with some kind of bundle (Evolve? Battlefield Hardline?) in the spring from Microsoft," he tells GamesIndustry.

Sony's PS4 exclusives could make the difference

If the price cut doesn't happen, Pachter believes that the major PS4 exclusives will make a difference and ensure that the console remains top dog for the most part of the new year.

"Assuming that Xbox One reverts to the $399 price point, I think that Sony first party software will make a real difference in 2015. The company has a phenomenal lineup of exclusives, and they're spread throughout the year. This should keep interest in the PS4 high, and should allow Sony to extend its lead," he adds.

As of yet, Microsoft is playing safe and hasn't mentioned anything after the expiration of its low-price offer.