Microsoft's console is now available for $349

Feb 11, 2015 05:54 GMT  ·  By

Microsoft almost tripled its Xbox One sales during the holiday season quarter after the console's price was cut by $50. The removal of the Kinect enabled Microsoft to reduce the price of the Xbox One without losing any money on each console sold.

However, Microsoft said that Xbox One's price would go back up at the beginning of January, which happened only for a brief period of time. The company announced two weeks into January that Xbox One would be available for a promotional price of $349.

The promotional price allows Microsoft to advertise the Xbox One with a regular $399 price, but actually sell it for only $349. The situation may not be temporary though and the Xbox One's price cut may become permanent even if Microsoft did not announce it yet.

Industry analyst Michael Pachter mentioned in an interview for GameInformer that Microsoft said on January 16 that “Effective tomorrow we have a special promotional pricing of $349,” but they did not say it was temporary and did not put a date on when it really ends, which is a bit strange.

“It’s not officially a price cut – it’s promotional pricing. This allows the retailer to advertise regularly $399 and now it’s $349, but I have a feeling it will never go back up,” continued Pachter.

Unbundling the Kinect was a good idea

Apparently, Microsoft has found a way to counter Sony, especially that many customers were migrating from Xbox 360 to PlayStation 4 due to the price difference between the two new consoles and the fact that they did not want/need the Kinect.

It seems that unbundling the Kinect and reducing the price made Xbox One more competitive and Microsoft is perfectly aware, especially that they have been able to change the price during the holiday season.

Even if Sony's PlayStation 4 does seem to have the upper hand for the moment, Microsoft appears determined to regain some of the lost market share through any means necessary.