Back in June, Microsoft Corporation (NASDAQ:MSFT) revealed the Xbox One X to the world at E3: the world’s biggest video game showcase. Xbox fans were excited to see that they will finally have a console capable going punch for punch with the PS4 Pro from Sony Corp (ADR) (NYSE:SNE).
There’s just one problem… The Xbox One X price. The price of Microsoft’s powerful new console could be its downfall as it embarks on a difficult journey to steal back some market share from Sony.
At $500, the Xbox One X price is out of impulse purchase territory for most people. That $500 price tag puts the Xbox One X about $100 above the PS4 Pro – its biggest competitor. Of course, if you have followed the Xbox One X story then you know that it can pump out beautiful 4K gaming much more easily than the PS4 Pro thanks to its superior components.
The problem is; we’re talking to console gamers. PC gamers love to try and squeeze every additional bit of performance out of their rig. If something can give them an extra 5 to 10 frames per second at max settings then they want to know about it. Console gamers are a different breed.
That’s not to say that there aren’t console gamers that don’t care about specs. I’m just saying that there might not be enough console gamers willing to pay the higher Xbox One X price for a marginal improvement over the PS4 Pro or even the basic Xbox One S.
At the end of the day, the Xbox One X isn’t going to have any exclusivity over the other Xbox models. They can play the same games – but the Xbox One X price is double that of the One S. If you don’t have a 4K TV at home, that increase in specs may not be fully realized anyway. Add on more money for a 4K TV setup and you can see why the Xbox One X may not have massive success.
Dedicated Xbox fans with a 4K TV might be willing to pay the Xbox One X price but casual gamers who are still rocking their trusty 1080p television set may have trouble committing to the higher price tag. I’m willing to be there are more casual gamers than there are dedicated Xbox gamers. The real dedicated gamers who want the absolute best graphics are on PC and I’m not sure the Xbox One X has enough juice to win them over.
Article printed from InvestorPlace Media, https://investorplace.com/2017/08/will-xbox-one-x-price-affect-popularity-this-fall-ggsyn/.
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