Microsoft Co. has decided to drop the price of its Xbox One console and game bundle from $500 to $450 to help increase sales.
The reduction is only permanent for retailers like Target, Best Buy, and Walmart, as Microsoft has confirmed its price cut is temporary for their online store, according to The New York Times.
At least two major retailers, Best Buy and Walmart, are now offering an Xbox One/"Titanfall" bundle for $449 as well, according to the report.
Since Microsoft made the $50 cut so reluctantly, investors are now trying to figure out how Q3 sales of the console might affect revenue.
Despite not coming close to sales numbers for the PlayStation 4, Xbox One sales accounts for a large portion of Microsoft's total revenue.
The company sold 3.9 billion units as of Q2, and the Xbox One accounts for $1.5 billion in revenue, according to The New York Times.
Thanks to the price cut, the Xbox One is now available for a similar price as the PS4. The PS4 is available for $399, which many have said is the big reason Sony has seen higher sales numbers, but price alone doesn't necessarily equal more customers.
The games available, or not available, for a specific device also plays a factor into console sales as well. Some of the top selling PS4 games include "Killzone Shadow Fall," which has sold over 2.1 million units worldwide, "Call of Duty: Ghosts," "FIFA14," and "Warframe."
Microsoft is hoping "Titanfall" helps the company like past games have like "Halo," which helped sell a number of Xbox 360 consoles.
Currently, Sony has sold 6 billion units of PS4 consoles, compared to 3.9 billion Xbox One consoles sold by Microsoft. The numbers could be higher by now, as the neither company has released a sales report since the beginning of March.
So what do you think of the price cut? Will you be more willing to purchase an Xbox One, or does it not make much of a difference?
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