Will Microsoft Corporation’s (NASDAQ:MSFT) Xbox One beat PlayStation 4s?


Microsoft Corporation (NASDAQ:MSFT) is trying hard to increase the sales of its Xbox one console but it seems like all the efforts of the company are going down the drain. The prices of console have been cut down, games are being given away for free and Kinect has been removed.

The latest promotion by the company tried to attract customers by giving away Kinect free Xbox One at a discounted rate of $350 with a free game. It is important to note here that the product was being sold at a much high discount rate of 40 percent.  Despite all its efforts and promotions, the company is still a long way behind its rival, Sony (NYSE:SNE).

It is not impossible for Microsoft Corporation (NASDAQ:MSFT) to turn the situation around. It can still compete with Sony, but for that purpose,  it would have to come up with some brilliant ideas and promotions.

It is not that the company has not tried; Microsoft started giving away free bundles of games to its Xbox customers since March 2014. For this purpose, the company has given away even the most popular of its games for free.  Despite Microsoft efforts, Sony PlayStation 4 beat the sales and outsold Microsoft in the months of March and April.

Microsoft then tried another campaign, and in May 2014, it cut down the price of Xbox one by 20 percent and announced a Kinect free version at $399. However, PlayStation 4 continued to be the best seller and Xbox remained well behind it. In September 2014, the company announced that it would give the buyers a free Xbox game of their choice, which meant that the customers could get the Xbox and 2 games at $399.

Michael Pachter, a market analyst, upon hearing the latest promotion, predicted that the sales of Xbox would finally outpace PlayStation 4’s sales. No doubt, the sales of Xbox spiked up but Sony’s PlayStation once again won the competition.

Around 13.5 million PlayStation 4s have been sold by Sony all over the globe, which is almost double of what Microsoft Corporation (NASDAQ:MSFT) managed to sell off. The exact number of Xbox One sales cannot be determined because Microsoft has not been very clear about the figures. Last quarter, it announced that the company has sold around 2.4 million Xbox consoles, but it did not mention as to whether these figures belonged to only Xbox One or whether they included Xbox 360 as well. Similarly, in April, the company announced that 5 million Xbox Ones have been shipped, but then again, it did not mention as to how many of them were purchased by the customers.

Talking about the Microsoft Corporation (NASDAQ:MSFT) stock prices, the company, on the last day’s trading of November 7, 2014, started at a stock value of $48.92 and ended at $48.68. The stock’s range during the day remained between $48.29 and $48.92; whereas its total market cap is recorded at a value of $401.43 billion.