Microsoft’s Xbox One price cut fuels increased demand for the console at GameStop

By Alexandra Burlacu | May 23, 2014 06:46 AM EDT

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Microsoft's Xbox One has reportedly increased in popularity at GameStop already, as the console recently got a $100 price cut after ditching Kinect.

When Microsoft first launched its Xbox One, it placed its console at a $100 higher price point compared to rival PlayStation 4 (PS4) from Sony. Price often plays a big role in every purchase, and it's not hard to imagine that interested buyers who were undecided between the Xbox One and the PlayStation 4 ultimately went for the cheaper one. After all, the PlayStation 4 is a very capable console and many who didn't necessarily want Microsoft's Kinect found Sony's offering to be a better deal.

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The Sony PlayStation 4 reportedly outsold the Xbox One back in April, and the achievement didn't come as much of a surprise. In a move to boost sales of its console, Microsoft decided to give customers another option: buy the Xbox One without Kinect, for $100 less.

The Xbox One console without the Kinect bundle is now available for a more decent $399, which is the same price point as the Sony PlayStation 4. This new option has apparently stirred consumers' interest, and GameStop has announced that it started to see a positive change for the Xbox One since the price cut.

"I definitely think we're already seeing in our stores with our reservation program as well as dialogue with PowerUp Rewards [members that] there's a stronger demand as a result of the price drop," GameStop President Tony Bartel said during a post-earnings financial call, as cited by Ubergizmo. "The good news for us is... we'll sell a lot more units."

In other words, Microsoft may have lost some significant sales so far due to the higher price of the Xbox One over the PlayStation 4. On the other hand, the PS4 may have outsold the Xbox One in April, but that was before the price cut. Now that interested buyers have the option of purchasing an Xbox One without Kinect at a lower price point, competition is expected to heat up even further. Will Microsoft be able to turn the tables and see its Xbox One outsell the PlayStation 4? Only time will tell.



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