Xbox One sales triple following $349 promotion

Yusuf Mehdi notes that interest has "skyrocketed" since the new price and bundles were introduced

As we reported at the end of October, Microsoft made a move to gain a price advantage on Sony this holiday season, knocking $50 off the Xbox One and various bundles as of November 2. Xbox One bundles with Assassin's Creed: Unity and Sunset Overdrive have been available for $349 without Kinect, which is $50 cheaper than a PlayStation 4 with no games. A Call of Duty: Advanced Warfare 1TB bundle is also being sold for $450. For cost conscious consumers, a bundle priced at $350 may be hard to refuse, and Microsoft noted today that it's already seen a big uptick in sales as a result.

"The response to this wave of blockbuster game releases and new bundles has been amazing, and sales have skyrocketed since the new price took effect on Nov. 2. Compared to the previous week, Xbox One sales in the US have more than tripled, which is exciting as more and more friends will be playing together this holiday," said Yusuf Mehdi, Corporate Vice President of Marketing, Strategy and Business, Xbox. "As we head into the busy holiday season Xbox One led generation 8 console sales in the US for the past two weeks. Shortly, we will have sold in to retailers more than 10 million Xbox One consoles.

"Almost one year ago, I had the honor of shaking hands with hundreds of fans at our Xbox One launch in New York City. We have listened to your feedback and have worked hard to deliver hundreds of improvements to Xbox One, celebrated the launch of amazing new games, and sought ways to offer more value for you. As we reach this milestone, I remain awestruck by your passion for games and your support of Xbox One. Thank you for an incredible year."

Microsoft recently launched Halo: The Master Chief Collection, which has seen generally favorable reviews. And with top-rated games like Sunset Overdrive bundled with cheaper hardware, Microsoft is hoping to gain an edge in holiday sales. It remains to be seen if the $349 price will be limited to a holiday promotion or if it will stick. If Microsoft wants to catch Sony in the console race, the latter may be the better choice.

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Latest comments (10)

Aleksi Ranta Category Management Project Manager 7 years ago
This actually reads as "I want to thank all the people in the United States...." and so on. it is very "nice" to hear that sales are going well over there due to the price reduction. I "know" the european consumers are enjoying reading these news as much as knowing that a co-worker buddy got a promotion instead you. Genuine happiness all around.

But it is nice to see sales pick up, seasonality or not :)
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Robin Clarke Producer, AppyNation Ltd7 years ago
No numbers tells you all you need to know.
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Joshua Temblett XO.TV, Editor-in-Chief 7 years ago
$50 isn't exactly the biggest price cut in the world... so if Xbox One's sales have indeed tripled then I am very surprised. I honestly didn't think it would have much of an effect.
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Anthony Chan7 years ago
I actually am not too surprised. We are less than a year into the life of the next gen consoles, and the market already sees price drops (perfect timing too, right before the holiday season and black friday).

@Joshua, I would propose it is not the amount of the price drop that has pushed sales, but more the price gap between competing consoles that is pushing sales. It appears that the latest generation still has not been fully absorbed by the general consumer, so small price movements can really move people sitting on the fence about purchasing one. A $50 drop looks like a $100 dollar difference between a similarly bundled PS4 and only a $50 dollar premium over Nintendo Wii U. If I were a best buy rep, I would say "Well, the price is actually really good if you consider it is only $50 more than Nintendo Wii U which is the cheapest 'next-gen console' on the market, but you get more power and better capabilities". Or against the one considering between PS4 and XB1, "You get a next gen console for 349 vs 449 for PS4, and the games currently are mostly the same, hardware is almost the same, and its only $80 more than a PS3 - for that matter it is pretty much a steal".
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Pete Thompson Editor 7 years ago
Pleased that sales are up, and it would be nice if the promotional discount followed suit in Europe as well, or for that matter if the $349 actually converted into the 222.83p that $349 converts to in the real world, as opposed to just replacing the $ for a sign as it seems to be for hardware and games.. Over here in the UK the kinectless XO is 349 which converts to $549.,99, how many consoles would Microsoft or Sony sell at that price..??

If there was a 50 price reduction on the XO bringing the console down to 299.99 sales would be a lot higher obviously. Does annoy me when one part of the world is given preference over all others.. ie: games hardware discounted in a certain region only or games releasing in that certain region days before any other regions get them.. :(
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Aleksi Ranta Category Management Project Manager 7 years ago
Microsoft is an American company so it caters to its home market first and foremost. After that its UK, france, germany. And then its basically everyone else. The same goes for supply and pricing. and the price differences, well its not so bad with hardware but with sofware, especially in europe it is crazy how companies pump the Nordics dry with 30-50% higher pricing than the rest of europe. Differences like that cant be put down to just a different VAT for example.
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Paul Jace Merchandiser 7 years ago
One small correction James:
Xbox One bundles with Call of Duty: Advanced Warfare, Assassin's Creed: Unity and Sunset Overdrive have been available for $349 without Kinect,
The Call of Duty: Advanced Warfare bundle is actually $450 with the price cut because it's a 1 TB system that normally retails for $500. Had it really been $350 it would have literally been the best console value that money could buy. Coincidentally I purchased mine for alittle less than $400 thanks to the power of Best Buy's reward certificates.

The sales spike isn't unexpected but I am a bit surprised that Microsoft hasn't atleast rolled this out in the UK yet considering that they have been getting outsold in that region as well. Hopefully they will spread this discount to all of their current territories. However, if theres one market that wouldn't surprise me if they passed on giving them a price cut it's Japan. Alot of people probably think a price cut would help in that market but I honestly don't think it would help very much, if at all.
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James Brightman Editor, North America, GamesIndustry.biz7 years ago
Ah thanks Paul, will fix
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Klaus Preisinger Freelance Writing 7 years ago
Not so sure about the Xbox One in Germany, the Amazon numbers this very site released in its German edition look rather disastrous.

But it seems Microsoft has better success in the U.S., else they would not be able to sell 1TB for a markup of $100, when the price difference between a 500GB and a 1TB drive in the wild is less than $10.
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Ron Dippold Software/Firmware Engineer 7 years ago
That's great! Even if you dislike MS and hated their original XB1 plans and ignoring your region, we need the credible competition to keep Sony on their toes. Because they've been completely complacent, fat and stupid. Driveclub. Firmware 2.00. The Order.

Remember the PS3 launch - Sony doesn't give a damn as long as they think they're safely in the lead, and requires an opponent to force them to pretend to be decent human beings (like any corporation). It's about time for XB1 to stomp on PS4 sales for a while. Then they'll all put on their dead skin smiley masks for devs and users again. For a while.

Edit: Meanwhile Nintendo's quite happily avoiding all this - give us the money and we give you the happy ending.

Edited 1 times. Last edit by Ron Dippold on 14th November 2014 9:27am

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