Xbox One price cut from last week is already seeing a higher demand for the Gaming retailer, Game Stop after Kinect was deleted from the Xbox One.
Initially, Microsoft unveiled the Xbox One for $499 in November and the price has been slashed to $399 in the summer.
Game Stop's Tony Bartel said that the Redmond, Washington based retailer is witnessing a high demand for the Kinect-less Xbox One version of the console.
"I definitely think we're already seeing in our stores [that] there's a stronger demand as a result of the price drop," GameStop president Tony Bartel said. "The good news for us is... we'll sell a lot more units.
"And that means there will be more [Xbox One] units out there to put software on."
The price was the result of user feedback and it will be effective as of June 9.
Microsoft said that it would begin shipping the Xbox One console without Kinect during the week of May 14th. The Redmond-based software giant says it will start offering the Kinect as an accessory, since users sent in feedback about cutting costs and leaving the Kinect out.
"Kinect remains an important part of our vision," head of Xbox Phil Spencer said following the announcement. "We will continue to innovate on Kinect. I think it's an important differentiator for us."
Lowering the price to match Sony's PS4 appears to be a good move ahead of the Christmas shopping season when the most Xbox One's are purchased.
Xbox one price cut titanfall bundle addresses two concerns that Xbox One users facing. Microsoft (NASDAQ: MSFT ) made the deliberate change to stay in competition with Sony's PS4 and to maintain the loyalty base of its customers.
The prevalent complaints about the Xbox One was a high price tag along with the Xbox Live Gold requirement enabling access apps like Netflix (NASDAQ: NFLX ) and ESPN.
This would give the Xbox One an edge over pricing or at least an entry point into the rivalry between Sony (NYSE: SNE) Playstation 4 and Xbox One., The matching pricing tag was arranged by unbundling the Kinect motion sensor, which adds approximately $100 more to the console price. A smart move by Microsoft.
Without the Kinect, the Xbox costs $396, while the PS4, retails for $399, and costs $381 to make. CNN reports that Nintendo's (NASDAQOTH: NTDOY ) Wii U Basic Set, selling for $299.99, with an associated production cost of $228.
Xbox One's popular "Titanfall" and "Forza Motorsport 5" editions are also on the list of discounted items with Microsoft lowering prices to as much as $50 at stores like Walmart and Best Buy.
Despite the rivalry, Xbox One sales have crossed the sales mark for 5 million units - a herculean feat for Redmond St., Seattle based Microsoft Corp. After its November launch, Microsoft announced in the beginning of the year that Xbox One sales had surpassed 3 million by the end of 2013 and that figure bumped up to 5 million Xbox One video game consoles to retailers.
The Xbox One console was introduced to gamers on Nov. 22 in the U.S., the UK and Australia ahead of Sony Corp's PlayStation 4 unveiling a week later. In order to spike sales, Microsoft promoted a bundled offer for $450. The offer came with the console and the much hyped shooter game "Titanfall" made by Electronic Arts Inc.
"Sony Corp said on Wednesday it sold more than 7 million PlayStation 4 video game consoles in just over four months to April 6, double the number of the older version, PlayStation 3, sold in about the same time frame after its launch," said a report from Reuters.
