The world's largest software maker
) recently slashed the price of its game console, Xbox One, by
The company stated that Xbox One console will now be available
at $399 instead of $499. This represents a decrease of 20% from
when the device was launched in Nov 2013. However, the cheaper
version will not come with Kinect motion sensor for gesture and
The price cut marks the first significant discount by Microsoft
since the software giant released the new console. This cut could
be in response to its closest competitor,
), taking a lead in the game console market. According to recent
data, Sony sold more than 7 million PlayStation 4 units globally,
while Microsoft sold only 5 million Xbox One, since launch. The
steep pricing of Xbox One may have discouraged casual gamers thus
affecting Microsoft's gaming market share.
Microsoft has always been very competitive and in the current
environment, where competitors like Sony are far ahead in the
gaming console market, it is natural that Microsoft would take some
aggressive step. The price cut could help Microsoft woo back
gamers, compete more effectively against Sony's PlayStation 4 and
thereby drive Xbox One demand.
Microsoft has made several efforts to make its gaming device
more appealing. The company has been enabling the console with rich
gaming features and new content. The company has been offering free
copies of premier titles such as
on the purchase of Xbox One units. The console is an all-in-one
entertainment device i.e. users can enjoy live TV from cable as
well as a satellite set-top box through the console. All these
features will help the device gain momentum in the near future.
Microsoft has a Zacks Rank #3 (Hold). Other stocks that have
been performing well and are worth considering include
Aspen Technology, Inc.
Citrix Systems Inc.
(CTXS). All these stocks sport a Zacks Rank #2 (Buy).
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