Earlier today, Microsoft announced that it would be reneging on its earlier promise to bundle the Kinect motion-tracking with its flagship console Xbox One. This new offering clocks in at $399, not-so-coincidentally the same price as their main competition – the $399 PS4. After a hailstorm of controversy surrounding the system’s launch, this marks the final point of reversal for Microsoft, removing the last pre-launch promise it had stuck to up to this point, after backpedaling on previous statements concerning “always-on” DRM and other unpopular console features.
Despite any assurances to the contrary, the decision to remove Kinect from an otherwise well-fleshed out vision for the home entertainment system reveals deep concerns about the state of console sales. For one, having stuck to its guns for months after release, even in the face of criticism, Microsoft stood to lose very little after weathering the first storms of consumers who violently disagreed about the need for a bundled Kinect. On top of that, the risk Microsoft took in keeping the Xbox One’s price higher with a bundled Kinect seemed very calculated for a long-run victory. Though consumers had to deal with a higher up-front cost, a cohesive ecosystem ensured that every buyer was getting the same experience, allowing developers room to make bold moves with the extra hardware in the market. Unfortunately, not many games made good use (or use at all) of the Kinect; whether this was the fault of publishers or a general lack of interest largely remains to be seen, but its effects are clear: the Kinect mostly serves as a voice-powered remote for the time being.
Sony’s highly competitive price at $399 seems to have simply forced Microsoft’s hand. Coming in at $200 higher than the PS4 at launch, the Xbox One faced an uphill battle from its first day in stores. The baffling part of the decision to break off a bundle is its timing – this sort of price-dropping usually comes in around a year or two after a console’s debut, helping to bolster lagging sales after early adopters jump in within the first few months. Coming in after barely six months of time on shelves, the new bundle can only mean that Microsoft executives are seriously concerned about the threat of the Ps4. While Sony’s machine is certainly a credible and powerful competitor, this is highly unusual behavior from a corporation which typically fights its way to victory through sheer market power and resources.
That being said, this might turn out to be a move of aggression from the tech juggernaut. While many of us are indeed currently reading the situation as that of a company looking down a fearsome PS4-wielded barrel, Microsoft might end up turning the gun on Sony. With the Kinect out of the way, the Xbox One certainly looks like a more compelling offering when it clocks in at the same price as the Ps4; exclusives like Titanfall, Dead Rising 3, and the upcoming Sunset Overdrive alongside a killer set of cross-media apps and services make for a solid package. Even on the indie front, Microsoft has made good on promises to step back from previously critical mistakes, earning enough favor through their ID@Xbox program from developer Capybara Games to get limited exclusivity on two high-profile titles: Super Time Force and Below.
One thing is clear: Microsoft is gambling with every step it takes with the Xbox One. Whether or not these gambles pay off will be up to consumers.