GameStop seeing "stronger demand" for Xbox One due to price drop

Technically, Microsoft won't start offering the Xbox One without its Kinect sensor until June 9th, but it appears that early pre-orders for the cheaper $399 version of its console have already generated some interest from consumers.

Gamespot reports that, in a conference call with financial analysts today, GameStop president Tony Bartel said, "I definitely think we're already seeing in our stores with our reservation program as well as dialog with PowerUp Rewards [members that] there's a stronger demand as a result of the price drop." He added that meant GameStop will end up selling more Xbox One units and suggested that it would also cause a boost in game software sales.

Obviously, it's still too early to say just how much of an impact the price cut will have on the Xbox One, but it seems likely that Microsoft will see more units sold than the 115,000 console sales it recorded in the U.S. in April for the May time period.

By the way, GameStop also announced its financial results for its last fiscal quarter that ended on May 3rd. It recorded revenues of $2 billion for the time period and a profit of $68 million, mostly due to higher hardware sales from both the Xbox One and Sony's PlayStation 4.

Source: Gamespot | Image via Microsoft

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Why would the cheaper SKU result in higher sales numbers for May? The new SKU doesn't come out until June 9. If anything the May numbers may be lower since people on the fence about buying one will be holding off until June to get the cheaper bundle.

There will be a sales bump thanks to the lower price, that much is pretty much guaranteed. Its also won't be because of Kinect being removed. The overall user base isn't as against having Kinect around (mostly because they don't really have an opinion on it either way), but they are very much for a lower price.

There are many gamers saving up for an X1 and the lower price means they can get it sooner.

warwagon said,
Really? The price gets lowered and more people buy it. my mind is blown :D

The price is not just lowered, they have removed an essential part or the system.

ians18 said,

The price is not just lowered, they have removed an essential part or the system.

Kinect is in no way essential for gaming. You won't even use it for gaming if you're playing good games.

That said this bundle is a bad value.

ians18 said,

The price is not just lowered, they have removed an essential part or the system.

The very fact that they CAN remove it, proves it's not essential.

FloatingFatMan said,

The very fact that they CAN remove it, proves it's not essential.

That's like saying a mouse is not essential to a computer because it can be removed and you can use the tab key on your keyboard.

warwagon said,
Really? The price gets lowered and more people buy it. my mind is blown :D

Price goes down, sales go up. You can't explain that.

ians18 said,

That's like saying a mouse is not essential to a computer because it can be removed and you can use the tab key on your keyboard.

Outside of Kinect specific games, there's not ONE function on the XB1 that can't be done with the controller instead. That's hardly an essential component.

FloatingFatMan said,

Outside of Kinect specific games, there's not ONE function on the XB1 that can't be done with the controller instead. That's hardly an essential component.

Come on, you have to admit it is easy to say "Xbox On" or "Snap ..." or "Open ...". Also gesture support has improved since the 360.

ians18 said,

Come on, you have to admit it is easy to say "Xbox On" or "Snap ..." or "Open ...". Also gesture support has improved since the 360.

Easier to use != essential to use.

ians18 said,

an essential part or the system

As evidenced by the fact that the system can be used just fine without it and not one major release ever bothered to utilize it to any worthwhile extent?

mrp04 said,

Kinect is in no way essential for gaming. You won't even use it for gaming if you're playing good games.

That said this bundle is a bad value.

It isn't a bundle...it's just a console. Buying a sole packaged console is rarely the best value. That being said, buying a console packaged with a game and/or a peripheral that you don't want for more money would not be a better value for you vs buying the sole console by itself and buying the game you want. If the bundle comes with stuff you want, then of course it will be of higher value to you.

McDonald's Value Meal logic applies here. You'll get a better deal if you get all together than separate but some folks don't want the extra drink and extra fries...they just want the sandwich. Often adding even a small drink to the sandwich order is more expensive than just buying the value meal.

ians18 said,

Come on, you have to admit it is easy to say "Xbox On" or "Snap ..." or "Open ...". Also gesture support has improved since the 360.

I don't do ANY of those. I don't snap things on my xbox. I just want to play games!
I can pin games to the start screen and easily select them with my controller. I don't need to use voice which won't work 100% of the time while my controller will.

Shadrack said,

It isn't a bundle...it's just a console. Buying a sole packaged console is rarely the best value. That being said, buying a console packaged with a game and/or a peripheral that you don't want for more money would not be a better value for you vs buying the sole console by itself and buying the game you want. If the bundle comes with stuff you want, then of course it will be of higher value to you.

McDonald's Value Meal logic applies here. You'll get a better deal if you get all together than separate but some folks don't want the extra drink and extra fries...they just want the sandwich. Often adding even a small drink to the sandwich order is more expensive than just buying the value meal.

While at $500 this argument is true, I think while it was available for $450 with either TitanFall or Forza it becomes much harder to make that argument. You have to know 100% that you will NEVER play TitanFall OR Forza and you will have to absolutely not want the Kinect at all.

If I didn't have an XB1 yet and the standalone console was $350 I'd buy that. Forza is available for $40 online and Kinect isn't worth the $110 difference to me.
But the standalone console is $400 and the Forza bundle was $450 about a month ago. That bundle would have been impossible to refuse.

Even at $500 I'd have to think hard about it. $60 is right at the border of Kinect being worth buying for me. I've used it a decent amount for Xbox Fitness but that's it. It also does have the other nice but not essential things like auto switching controllers but I rarely ever have friends playing on my Xbox anymore.

I guess. I didn't think the value of the standalone system is that great. If people are rushing to this, why weren't they buying the $450 Titanfall or Forza bundle which included the Kinect for basically free?

mrp04 said,
I guess. I didn't think the value of the standalone system is that great. If people are rushing to this, why weren't they buying the $450 Titanfall or Forza bundle which included the Kinect for basically free?

Probably because many consumers are idiots and think they are somehow getting better value for the Xbox One sans Kinect for $399 than the bundle at $450/$499.

I don't understand how people can be so narrow minded. I haven't played a single motion-controlled game on my Xbox One other than Fitness, and I have to say I love the Xbox One + Kinect. The proposition it presents extends well beyond video gaming, yet many refuse to see it :/

Chsoriano said,

Probably because many consumers are idiots and think they are somehow getting better value for the Xbox One sans Kinect for $399 than the bundle at $450/$499.

I don't understand how people can be so narrow minded. I haven't played a single motion-controlled game on my Xbox One other than Fitness, and I have to say I love the Xbox One + Kinect. The proposition it presents extends well beyond video gaming, yet many refuse to see it :/

I barely ever use the Kinect, mainly ONLY for Fitness. Not even voice commands (they suck) but at $450 WITH a game AND Kinect it's just an obvious choice.

Chsoriano said,

Probably because many consumers are idiots and think they are somehow getting better value for the Xbox One sans Kinect for $399 than the bundle at $450/$499.

I don't understand how people can be so narrow minded. I haven't played a single motion-controlled game on my Xbox One other than Fitness, and I have to say I love the Xbox One + Kinect. The proposition it presents extends well beyond video gaming, yet many refuse to see it :/

Look around you on all kinds of message boards and you'll see that many "gamers" are.

mrp04 said,
I guess. I didn't think the value of the standalone system is that great. If people are rushing to this, why weren't they buying the $450 Titanfall or Forza bundle which included the Kinect for basically free?
You would be surpised how non tech savy gamers minds work. I know 2 personaly. They don't have a clue except price. Does not matter what the hell is bundled with it. I had to explain over and over why he should get the titanfall bundle at 450 cause he kept saying but the ad he saw says they have one for 399 the same price as that playstation thing.... and he doesn't need Kinect. I kept saying FOrGET about the dang Kinect and realize your getting a 60 dollar game for 40 basically and finally he basically only got it on my assurance it was a better deal lol. He is not a rare case either.

I agree it is so odd to hear them repeat the marketing line that this is a "price drop" when anyone with half a brain could figure out that Titanfall and Kinect are worth more than $50-$100. This is a new SKU, not a price drop, and this SKU is a much worse value than the previous offers.

Not surprised to see Gamestop, the home of anti-social shut-ins, claim increases interest. However if you look at Amazon the sales of the Kinectless SKU are abysmal compared to all other models. I think the increase in sales will be marginal at best, but the damage done to the platform by splitting the user base will be long term and detrimental to the profitability of Xbox.

Avatar Roku said,
I agree it is so odd to hear them repeat the marketing line that this is a "price drop" when anyone with half a brain could figure out that Titanfall and Kinect are worth more than $50-$100. This is a new SKU, not a price drop, and this SKU is a much worse value than the previous offers.

Not surprised to see Gamestop, the home of anti-social shut-ins, claim increases interest. However if you look at Amazon the sales of the Kinectless SKU are abysmal compared to all other models. I think the increase in sales will be marginal at best, but the damage done to the platform by splitting the user base will be long term and detrimental to the profitability of Xbox.

There was no damage done to the platform. The Kinect is just NOT NEEDED for any of the good games.

Microsoft will eventually either bundle a game or ACTUALLY drop the price to $350, where the standalone console should have released and cost back in November. I've been saying they need to release a standalone console but $400 is not the price point to sell it at, not when the $400 PS4 is ~30% stronger and has more good will at the moment.

Edited by mrp04, May 23 2014, 7:45pm :

Dropping the price to $350 would be wise for MS. Making it a price war Sony could never win if they continue to bring exclusives over Sony.