Pachter: 'Microsoft Desperately Wants to Win' - NewsWilliam D'Angelo , posted on 12 March 2015 / 5,173 Views
Wedbush Securities’ Michael Pachter has told Gaming Bolt that Microsoft is doing whatever it can to be number one in the console wars. He said that winning is more important than being profitable in the short term, since he knows that people will buy software to make up the difference with the recent $50 price cut.
"Microsoft desperately wants to win," said Pachter. "Winning matters more to them than short term profit and I emphasize short term because I think that they understand that the profit stream from an Xbox One owner is a long one, so if you give up fifty bucks of profit now because you price it at $349 instead of $399, you’re going to make that $50 back later because people will buy tons of software."
"I think that they’re being pretty smart about it," he continued. "I think they’re being pretty disciplined about it, but yes, I do think the price will stay down. The interesting thing is Sony’s probably not feeling too compelled to cut, so I think Sony’s probably going to stay at $399 and I’m curious to see if the Xbox One does outsell the PS4 at the lower price point because again, holiday was kind of mixed up with a bunch of bundles. We were getting a lot of free software. I don’t think – that Assassin’s Creed bundle was around in January, but I don’t think we’re going to keep getting software. Those bundles kind of are ending."
Pachter added that Microsoft was suprised at how much Xbox One sales dropped after the temporary price cut ended and the price went back up to $399, from $349. Microsoft quickly dropped the price of the Xbox One back down to $349 and told Pachter that sales for the Xbox One have improved.
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel dedicated to gaming Let's Plays and tutorials. Outside, in the real world, he has a passion for the outdoors which includes everything from hiking to having received his B.A. in Environmental Studies. You can contact the author at email@example.com or on Twitter @TrunksWD.