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Talking Point: Should Sony Respond to Microsoft Xbox One Price Cut in Spain?



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Talking Point: Should Sony Respond to Microsoft Xbox One Price Cut in Spain?


Admittedly, Microsoft knows how to react quickly. The Redmond-based manufacturer has been flipping between Xbox One strategies faster than Usain Bolt in sandals, starting at E3, where the company controversially defended its abhorrent digital rights management policies, only to withdraw them a few days later. days later. It later reversed its approach to indie development and ended up making a handful of other minor changes to stay competitive with a rampant Sony. Today marks its latest bet in the battle against the PlayStation 4, as the company has reduced the price of the Xbox One to €399.99 in the UK.

Although the discount is exclusive to Britain for the time being, it brings the platform’s entry fee much closer to the Japanese giant’s leak device. Previously, the Microsoft console was priced at £429.99, which is a saving of £30.00 over the original recommended retail price. There’s still a cheaper PS4 to be had, with Sony charging around €349.99 for its device, though the trump card in the Xbox maker’s locker is the inclusion of TitanFall for free, which is sure to boost sales. in the coming months. It’s worth noting that this is a time-limited promotion, which means that once stock has run out, the bundle is supposed to be discontinued. However, should SCE be concerned?

The Xbox maker insists today’s move was not prompted by the PS4. However, it is well known that Sony’s system is outperforming Microsoft’s in the retail market at an alarming rate, which is an unexpected twist, given the latter’s dominance in key territories such as Spain during the previous generation. The Japanese giant’s black box of cheats sits on an installed base of 5.3 million people worldwide, while its competitor has yet to provide an update since late last year, when it announced numbers in the region of 3 .9 million.

Perhaps most impressively, a whopping 500,000 PS4 consoles were sold in Spain alone in 2013, giving it a significant advantage in software sales. So it’s not surprising that Microsoft has chosen to focus on the UK market, where its dominance with the Xbox 360 seems to be fading faster. Sales are also slipping a bit in North America, where Sony’s system also has a marginal advantage, but the situation isn’t that dire, as evidenced by the Xbox One’s win at December’s NPD.

Reducing the price of the system and bundling one of this year’s biggest games seems like a smart move, but will Sony have to break a sweat? We dare to say that he will be very attentive to the numbers, but we doubt that there will not be a panic yet. The problem for the platform holder is that it doesn’t look like it can keep up with the demand, as Amazon.co.uk is currently displaying a notification on March 25th for when the next stock will be available online. SCEUK CEO Fergal Gara recently admitted that the issue may not be rectified until April.

And that means there’s no real reason for the platform owner to respond yet, since he can’t sell shares he doesn’t own. The move may put pressure on the company to speed up shipping additional units to the battlefield to prevent fencers from selecting the Redmond-based manufacturer’s machine, but the extra incentives will be unnecessary as long as it can’t even meet the existing pre-orders. Once interest dwindles, that’s when you may need to start countering with some promotions of your own.

Assuming the gap begins to close, of course, the company has options available. If Microsoft continues to offer game bundles at €399.99, it could easily add value to its own hardware bundles to maintain an edge over its rival manufacturer. An inFAMOUS: Second Son bundle currently costs £389.99, so the inclusion of the PlayStation Camera or a three-month subscription to PlayStation Plus could keep the console nose to nose with its competitor’s machine. The company could also include a download code for a game like Killzone: Shadow Fall or Knack if you need it.

The important thing is that you don’t panic, as you have created a large enough advantage to force your nearest competitor to participate in this response. There’s no doubt that the promotional blitz surrounding TitanFall will give the Xbox One a huge injection of interest, but even though the differences have lessened somewhat, Sony still has the advantage of a cheaper and slightly more powerful box. . Microsoft’s latest move will level the playing field somewhat, but the Japanese giant is still very much in charge. However, that doesn’t give you an excuse to be complacent.

Do you think Sony should worry about today’s Xbox One announcements? What should the platform holder do to counter Microsoft’s small price cut? Submit your strategies in the comments section below.

Should Sony react to today’s Xbox One price cut? (85 votes)

Yes, the platform carrier’s leading position is now in jeopardy

9%

Hmm I’ll wait and see

18%

No, the company continues to sell more units than it can manufacture

73%

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