Since it was announced, the Xbox One had always been at a price disadvantage. Microsoft's insistence upon including a Kinect with every console meant that gamers were paying $100 more than those who went with a PS4. At launch, it didn't look like the price difference didn't matter all that much as the Xbox One moved millions of units within its first few months. Now sales are slowing down, and Microsoft is taking drastic measures in at least one territory.
Xbox UK announced this morning that it's slashing the price of the Xbox One in the region to £399.99 starting February 28. Microsoft will also be throwing in a free copy of Titanfall. All in all, UK gamers are saving £80 with this bundle considering that the Xbox One originally launched with a price tag of £429.99.
So, why the sudden price drop mere months after launch? Most seem to think it's in response to the PS4 routinely outselling the machine in the UK since the start of 2014. One of the reasons for that is obviously the PS4's lower price. At £399, the Xbox One now matches the PS4 in price and even throws in a copy of the console's flagship title. This is a declaration of war.
This won't be a war fought on multiple fronts though. Microsoft will not be dropping the Xbox One's price in the U.S. anytime soon. Instead, Microsoft will be releasing the same Titanfall bundle but at the usual price of $499. That puts the Xbox One at a disadvantage compared to the PS3's more affordable $399 price tag, but the sales difference may not be as large in the U.S. to warrant a price drop here yet.
As you can imagine, the announcement has not gone over well for some. VG 24/7 equated the price cut to a giant middle finger to those who bought the system at launch. For those that bought the system at launch, it surely will feel that way. Some are even calling for Microsoft to give early adopters a free game which is a little silly since every Xbox One launch unit came with a free copy of FIFA 14.
For those who had yet to buy an Xbox One, it's rather tempting. First and foremost, that's what Microsoft wants - more sales. It can focus on appeasing early adopters later. For now, it has to focus on courting these potential new customers.
Image via Xbox UK/Twitter