News Column

Cheaper Xbox One unlikely to affect stock price

June 11, 2014



A: The Xbox One made its debut last year with a price tag of $499, pricing it above the PlayStation 4. But this week, Microsoft started selling a version of the video game console at $399.

The original Xbox One came with the Kinect camera, which allowed game developers to create games that would sense where the player is and respond to them. The new $399 version of the Xbox One has a lower price because it doesn't have the Kinect camera.

But consumers are reportedly responding. The new $399 Xbox One consoles are selling well, says gaming blog GameSpot, quoting a representative from video game seller GameStop.

Winning in the living room is certainly key to Xbox creator Microsoft in the long term. There's a race to find the right technology that consumers will be comfortable with to download and watch video content. But investors shouldn't expect this seemingly smart move in pricing to have much effect on the stock. The Xbox and Windows Phone units of Microsoft account for next to nothing when it comes to Microsoft's stock price, says Trefis.com.

Microsoft Office, Windows Server and the Windows operating systems account for 74% of the stock, so that's the business that really matters now.


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Source: USA Today


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