Xbox One Price Drop vs. PS4 Price: Retailers Slash PS4 Prices To Match Microsoft Selling Consoles At Lower Price Margin To Retain Developers And Quality Games. Recent reports confirmed that Xbox One price drop has cut prices to $527 or the equivalent of £329.99 in the U.K., taking a dip into Sony's Playstation 4 sales during the holiday marketing season. Previous Xbox One prices were as high £349.99, a price tag shared by the PS4. Now retailers in the U.K. are reacting to the Microsoft Xbox One price drop by cutting margins to the PS4.

With the Redmond, Washington-based tech firm competing to stay ahead of its Japanese counterpart during the holiday season, the Xbox One price drop comes as a competitive gesture to beat the race for sales among video consoles.

Reports confirm that Sony has not directly pushed prices down for the PS4, but according to Push Square, retailers in the U.K. reacted to the Xbox One price drop by slashing PS4 prices. And PS4 currently has bundles that have a similar price tag as Microsoft's Xbox One at $527.

Analysts say this is on a level playing field as the Xbox One. But Microsoft's strategy is to retain developers and maintain the Xbox One despite a dip in profits. Tech experts say that if Xbox One developers lose interest in creating quality games, it could spell death for Xbox One.

According to Amazon U.K., it has a PS4 deal combined with FIFA 15 for $527. In U.K., other gaming firms like HMV have released bundles with similar figures. This year will be an interesting season for video consoles to see if the Xbox One price vs. the PS4 price will have an effect on the consumer. Gamers agree that on the whole, both the Xbox One and the PS4 are a steal after prices for both consoles have dropped since they were released in November 2013.

Sammy Barker wrote in a PushSquare report, "the market in the UK is heating up ahead of Christmas - and that means that console prices are dropping across the board. Microsoft may be making more of a deal out of its RRP reduction to £329.99, but it seems that Sony's allowing retailers to go ahead and sell its system for the same price, too."

Barker added, "While this is likely to increase sales for both manufacturers, the real winners here are consumers, who are going to get much more for much less money when they head to the shops."

With Reports From Attackofthefanboy.com, PushSquare.com