The Console War: PS4 UK Drops Prices to £289 While Xbox Revenues Down 24% For Third Quarter
The PS4 and the Xbox One have been going head to head for a long time now. Ever since the release of the consoles back in late 2013, they have been in war at all fronts including updates, games, exclusives and hardware efficiency and capability. An update to share is that the PS4 UK has dropped its price to counter the price cut of Xbox One. This is a good new for anyone who wants to get their hands on the PS4 console as it is on its all time low price in response to the Xbox One which is selling at an RRP of £300.
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Retailers Selling PS4 For As Low As £289 While Xbox Revenues Take a Hit
The console that was previously selling for as high as £330 with retailers like Tesco, Amazon and Argos, has officially been reduced to £299.99 and Amazon is selling the PS4s for a further reduced price of £289. Sony has been advertising for this price reduction itself on their UK Twitter page as you can see for yourselves below.
— PlayStation UK (@PlayStationUK) April 22, 2015
This might be a way to cater to a much larger portion of fans and this might signify that in the UK the price cut of Xbox One has affected the PS4 sales adversely meaning that the console war is on, at least in the UK market.
The deal arrives on a very timely note when the Xbox One price cut might have been working in the favour of Microsoft. Just 9 days back did Microsoft reduce the price of their console from £330 to £300. It might be interesting to note that both the retailers have mentioned that this happens to be a "Limited Time Offer" but we expect that the offer will catch onto other countries too.
As you might remember now that in late 2014 Xbox One had huge price cuts with up to 25% price reduction and it seems like those reduction have just caught up as the updates on the Xbox front are that the revenues from Xbox One and Xbox 360 were down 24% as reported by Venture Beat. The Microsoft consoles combined have reported a sale of 1.6 million units down from 2.0 million in Q3 2014, as well as lower average sale price for the downturn in its gaming division.
“The revenue decline [was] driven by lower console unit [sales] against the prior year post-launch quarter and increased mix of lower price Xbox Ones,” reads Microsoft’s report for investors.
The Microsoft console sells for a lower price of $350 in the US coupled with one or two games while its original launch price was $500 when in November 2013. The console continued to sell at the same price and was raking in good numbers when Microsoft decided to cut out the Kinect camera for a decreased price version of $400 to compete with the PS4 price in May. The company decreased the price of their console further in October 2014 when it started selling for $350.
Recent reports from the industry tracker NPD group have shown that sales for the previous gen consoles for both Microsoft and Sony have taken a huge hit. Microsoft's Xbox 360 was selling well during parts of last year while the PS3 was binding its time, but that is no longer the case. Now both of the previous gen console sales are non-existent as compared to the current gen consoles. Hence, this has affected Microsoft's performance in the gaming market as a whole.
Do share your thoughts with us about the competitive market pricing applied by the Sony to counter Microsoft's console price and the decrease in revenue for the Xbox following the last quarter of 2014.
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