Microsoft's latest marketing strategy is expected to pay off: the Xbox One Kinect bundle is no longer the default purchase. It's too early to tell the long-term advantage of the unbundling, but analysts believe it's enough to propel the Xbox One's US sales past the PlayStation 4 in 2015.
Microsoft announced May 13 that it is offering the Xbox One at a $399 price tag, sans the Kinect accessory. This is quite expected as sales of the flagship, next-gen console are significantly lagging behind Sony's PS4.
It is now projected the Xbox One will have the largest installed base in the US by 2016. This is credited to the hardware unbundling, as well as to Microsoft's immediate response to the sales situation with Sony.
Lewis Ward, research manager of IDC: "This change will be enough to push the Xbox One installed base higher than PS4 in the U.S. and Canada in 2015 rather than 2016." He does maintain that globally, Sony will still have the largest installed base in the gaming market.
With E3 over the horizon, Sony will have to rethink its strategies to stay ahead of Microsoft. Pricing is a crucial factor early in a console's cycle, ensuring a solid installed base. Social consensus, continuing software support, great titles, and digital offerings sustain growth afterwards.
Sony's market dominance isn't guaranteed at the start of every cycle, and Microsoft's latest pricing strategy is implemented in anticipation of this. "It's almost as if consumers hit the reset button at the start of every cycle and re-evaluate their gaming needs from a home console," says Tilting Point Exec Jesse Divnich.
The Xbox One Kinect bundle affirms the camera's significance as add-on hardware, though. Microsoft's challenge is proving the Kinect is an essential part of the Xbox One experience. With fewer people using it in their living rooms, the Kinect's future is uncertain. Offering the accessory separately and at a competitive price point should sustain sales and patronage (gamesindustry.biz).