IDC suggests Microsoft will unbundle the Kinect from the Xbox One to improve sales

[GotBored]

IDC suggests Microsoft will unbundle the Kinect from the Xbox One to improve sales http://www.winbeta.org/news/xbox-one-vs-ps4-idc-suggests-microsoft-will-unbundle-kinect-xbox-one-improve-sales

 

The folks over at International Data Corporation (IDC) are forecasting that Microsoft will unbundle the Kinect sensor from the Xbox One console in 2015, amidst competitive pressure from rival consoles Nintendo Wii U and Sony PlayStation 4. By doing this, Microsoft will see an Xbox One sales bump, especially in the United States and Canada.

 

IDC also projects that the PlayStation 4 will sell over 51 million units worldwide by 2016, while Microsoft is projected to lead in North America and Canada if the Kinect bundle was removed. Sony's PS4 has sold more than 7 million consoles as of April 2014, while Microsoft has indicated that they have only shipped more than 5 million Xbox One consoles, with roughly 3 million consoles sold to date.

 

[timster]

if they do that, I hope they allow the console to automatically sign in to Xbox Live without the Kinect. I don't mind it, but there are times where I'm not in front of the camera or the Kinect doesn't see me properly when the Xbox turns on

[the better twin]

2015 will be too late. They need to do it before this holiday season.

[HawkMan]

2015 will be too late. They need to do it before this holiday season.

 

Not really.

[Dot Matrix]

2015 will be too late. They need to do it before this holiday season.

Why? A gaming console is a long term investment for many. There's still people out there who will be upgrading off the 360 (or other platforms) yet within the next couple of years.

[vcfan]

[George P Global Moderator]

Or they leave it in and just cut the price, make it up on the software side and upcoming app store. 

[Thief000]

 

^THIS. LOL @ IDC.

[Blackhearted]

I agree with 2015 being too late to do it. They need to do something to improve sales this year, they wont have the initial rush of xbox fans they had last year to push it to high sales this holiday season. Keeping it at $500 not only will ensure the ps4 crushes it this holiday season(and throughout the year in general), but will possibly mean it may even fail to overtake the wii u's lifetime sales this year.

[BajiRav]

I am sure Microsoft needs to do "something" but this...

 

amidst competitive pressure from rival consoles Nintendo Wii U

 

shows how clueless IDC is.

[Torolol]

What Microsoft should do is to release more exciting games that using Kinect in interesting way.

I was dissapointed that during initial XB1 launch no such kinect games are available.

The longer microsoft stalling the release of such kinect games, it wll be harder to removes the market views kinect inclusion as 'unjustifiable'.

[PGHammer]

What Microsoft should do is to release more exciting games that using Kinect in interesting way.

I was dissapointed that during initial XB1 launch no such kinect games are available.

The longer microsoft stalling the release of such kinect games, it wll be harder to removes the market views kinect inclusion as 'unjustifiable'.

The issue with Kinect is the same issue that Sony had (and has still) with PS Move - no interest from developers.  Microsoft (to their credit) HAS done a better job integrating Kinect into XB1 than was the case with XB360 - however, all too many console gamers are of the same mind with the current console generaiton as they were with the previous generation (and, as much as they would dislike the comparison, with all too many PC and tablet and slate users, and even smartphone users - a cubicle for everything, and every device in its cubicle).  Nobody wants to change how they use (or view) changed hardware.

[Blackhearted]

I am sure Microsoft needs to do "something" but this...

 

 

shows how clueless IDC is.

 

You'd maybe have a point about it supposedly not being competition if the xbox one was actually beating the wii u by a large margin. But it's not. And it's not looking like it will any time soon.

[spenser.d]

Apart from past flawed predictions, they also say that Xbox One has only sold 3 million consoles, which is shorting the actual figure by a million at minimum, so its kinda hard to take them seriously.

[HawkMan]

Ah I see the usual suspects are just attacking the messenger as always.

 

 

ummm.. who's attacked who... no one's attacked anyone, you're seeing things. 

[siah1214]

Ah I see the usual suspects are just attacking the messenger as always.

IDC is not the messenger here.  IDC is making a statement and we're ridiculing them.  We'd be attacking the messenger if IDC made the claim, The Verge reported it, and we attacked the Verge.  That's how shooting the messenger works. 

Your post was low effort, you should try harder next time. 

[Showan]

Or they leave it in and just cut the price, make it up on the software side and upcoming app store.

Thank you. People act like they can't just price cut and keep everything in the box....

Sure investors would be upset. But in the long haul of it, they will churn profit much quicker than what they did with the 360, considering there's no fancy silicon or anything of that nature.

[-T- Member]

If they do this, I'm selling my Xbox One.

[trooper11]

Why is it that some people seem to think think that the only option is to drop Kinect?

I mean I see a few here that suggested dropping the price, which makes more sense to me.

It seems to me that those that suggest dropping Kinect are saying that because they find no value in it, not because they are considering the platform as a whole or what will really drive sales. Maybe they assume everyone hates Kinect so much that even a price drop will not change things unless Kinect is gone.

If MS drops Kinect, I sure hope you guys that have been clamoring for it are ready to jump on board with the X1.

My thinking is that if they drop Kinect, it will be becuase they have lost faith that it offers any long term value to the Xbox platform. If they just drop the price, it could show that MS actually see value in it to the point that its worth cutting into profits to make it a better value.

[benthebear]

You'd maybe have a point about it supposedly not being competition if the xbox one was actually beating the wii u by a large margin. But it's not. And it's not looking like it will any time soon.

 

I was actually surprised to learn that the number of Wii U shipped by December 2013 were ahead of XBox Ones shipped by March 2014. Yeah, the Wii U had a head start, but I had money on the One surpassing the Wii U's shipment within two months of its launch. 

[+Audioboxer Subscriber²]

Selling a bundle without it doesn't mean they can't continue selling a bundle with it - Surely that is the real test of whether or not people want Kinect? What bundle the majority choose.

 

If they want price parity they're pretty much going to need that solo unit, the only other option is to eat the cost themselves and that isn't MS' style (selling at a considerable loss). Right now Sony have more room to play with in reaction to MS, if MS choose to eat the costs and go below the PS4, Sony can counter by eating some loss themselves and going back under the XB1 - The highest amount of loss per unit will always go to MS in this scenario with the Kinect being bundled.

 

Trailing the PS4s price for years is simply not a good business plan, especially not considering Europe (and the UK) seem to quite happily set their allegiance on whatever is cheaper/getting praised more online. The UK was dominantly 360 last generation and within months of these new consoles being released has quite clearly gone pro-PS4 for now.

[Hedon]

No reason to drop kinect when they are having record sales. They also said they will not drop kinect so it's really nothing to discuss.

[trooper11]

Selling a bundle without it doesn't mean they can't continue selling a bundle with it - Surely that is the real test of whether or not people want Kinect? What bundle the majority choose.

 

If they want price parity they're pretty much going to need that solo unit, the only other option is to eat the cost themselves and that isn't MS' style (selling at a considerable loss). Right now Sony have more room to play with in reaction to MS, if MS choose to eat the costs and go below the PS4, Sony can counter by eating some loss themselves and going back under the XB1 - The highest amount of loss per unit will always go to MS in this scenario with the Kinect being bundled.

If MS tries to sell a bundle without it while bundling one with it, that would effectively split the market again and MS would then have to decide when it was worth developing new features that use Kinect or investing in exclusive titles that used Kinect.

As far as MS eating costs, since when is that not an option to MS? They have eaten losses on Xbox and things like Bing for years. Not because they want to, but because they felt it was part of a long term goal. Plus, we can't ignore the fact that Sony is under more genral financial pressure than MS. Sony could most definitely cut its own price and take losses, but is Sony really in a position to take on more losses considering how the rest of its company is doing?

A lot of this comes down to how much your interested in Kinect to begin with. It makes it so much easier to favor one strategy or another.

Without knowing what MS' plans are that involve Kinect, its really hard to say how they value it. I do think getting the price lower is a good idea though. That and getting released in more regions.

[+Audioboxer Subscriber²]

If MS tries to sell a bundle without it while bundling one with it, that would effectively split the market again and MS would then have to decide when it was worth developing new features that use Kinect or investing in exclusive titles that used Kinect.

As far as MS eating costs, since when is that not an option to MS? They have eaten losses on Xbox and things like Bing for years. Not because they want to, but because they felt it was part of a long term goal. Plus, we can't ignore the fact that Sony is under more genral financial pressure than MS. Sony could most definitely cut its own price and take losses, but is Sony really in a position to take on more losses considering how the rest of its company is doing?

A lot of this comes down to how much your interested in Kinect to begin with. It makes it so much easier to favor one strategy or another.

Without knowing what MS' plans are that involve Kinect, its really hard to say how they value it. I do think getting the price lower is a good idea though. That and getting released in more regions.

 

Sony seem to be okay updating the PS4 camera with new voice commands (patch 1.70) and are releasing no less camera based games than MS. You can't exactly say the commitment MS have shown to Kinect is somehow in a world of it's own versus Sony on the games front, they didn't even have Kinect Sports out till recently. What does that say? It's not like any of the rumoured games for E3 in that other topic are massively pro-Kinect either. At some point the state of the overall business is going to be more important than a fear of developers not using Kinect, as that is only that, a fear. As I've already said a more expensive bundle with it can still be done, why not have both?

 

Anyway, these decisions have to be made for investors and the Xbox business, not fans interested in their own strategies based on individual tastes. The success of the PS4 influences the hand MS will play whether or not fans love Kinect or hate it. That's why business is dynamic and plans have to change sometimes. I think the amount of units the PS4 has sold has surprised everyone, but it is what it is and could quite easily influence MS to change something they were once adamant about not changing months back. Their investors will be saying well, sure it is beating the 360 year to date, but why is that other black console setting even bigger records? Price? Probably a good shout. What can we do about price then without busting up our profits too much? And there starts the Kinectless argument... It is the easiest way to slash the consoles price, for all the people shouting blasphemy at the idea of it, I don't really see anyone offering an alternative for MS to make a big price drop this year.

[trooper11]

Sony seem to be okay updating the PS4 camera with new voice commands (patch 1.70) and are releasing no less camera based games than MS. You can't exactly say the commitment MS have shown to Kinect is somehow in a world of it's own versus Sony on the games front, they didn't even have Kinect Sports out till recently. What does that say? It's not like any of the rumoured games for E3 in that other topic are massively pro-Kinect either. At some point the state of the overall business is going to be more important than a fear of developers not using Kinect, as that is only that, a fear. As I've already said a more expensive bundle with it can still be done, why not have both?

You missed the part of my post where I pointed out that its about more than gaming to MS. Its been mentioned before, but most people just ignore that point and focus on what exclusive games might come out.

Sony has indeed added more voice commands, which is great. Is the ps4 camera as integrated into the OS as Kinect is?

What I have trouble figuring out is why people are so sure that Kinect does nothing outside of play games and do a few voice commands. I mean I get it when it comes from people that don't own one, but then some that do own it feel the same way.

 

Anyway, these decisions have to be made for investors and the Xbox business, not fans interested in their own strategies based on individual tastes. The success of the PS4 influences the hand MS will play whether or not fans love Kinect or hate it. That's why business is dynamic and plans have to change sometimes. I think the amount of units the PS4 has sold has surprised everyone, but it is what it is and could quite easily influence MS to change something they were once adamant about not changing months back. Their investors will be saying well, sure it is beating the 360 year to date, but why is that other black console setting even bigger records? Price? Probably a good shout. What can we do about price then without busting up our profits too much? And there starts the Kinectless argument... It is the easiest way to slash the consoles price, for all the people shouting blasphemy at the idea of it, I don't really see anyone offering an alternative for MS to make a big price drop this year.

Your right, its not based on fans or non-fans interested in strategies based on their own taste. I do think its interesting that if someone tries to make a case for keeping kinect, its pretty much laughed off as some fan calling it 'blasphemy'. MS obviously had a reason for keeping kinect, yet few care what the reason was. Of course that can change and MS can always reevaluate.

Its pretty simple really.

Either MS believes Kinect offers a long term value and it is worth keeping even if that means taking more losses to have a price cut. Or they do not and they kill Kinect in order to drop the price without a loss or cut the price farther and take a loss. I see little reason for them to try some half plan where they introduce multiple skus if the point of dropping kinect in the first place is to cut prices and react to a lack of interest.

It really doesn't matter how people around here feel about Kinect.