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Senior publishing source confirms new, cheaper Xbox One release for 2014

Friday, 31st January 2014 11:38 GMT By Matt Martin

Microsoft will release a cheaper Xbox One this year, a well-respected source has told VG247, apparently confirming this week’s leaks out of Redmond.

white xbox one

Microsoft has told trusted publishing partners that it will release a new model Xbox One before the end of the year, a senior source has confirmed to VG247.

Although the source was unable to confirm that the system will be disc-less and feature a bluetooth adaptor, the new console will be priced cheaper than the current $499 model.

Upon release, Microsoft would likely drop the price of the current Xbox One model, placing it in the same price point as Sony’s PlayStation 4.

New hardware isn’t the only leak from Microsoft this week, with reports suggesting Halo 2 Anniversary Edition will be released on November 11, complete with a beta for Halo 5.

Although Microsoft isn’t commenting on the rumours, it isn’t taking these leaks lightly – the firm is reportedly looking to get legal on someone’s ass, adding fuel to the fire.

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50 Comments

  1. Johnny Cullen

    Boom. Now the question is who can hold out waiting once Titanfall comes out? Because I can still easily see a lot of systems sold at Titanfall’s launch, regardless of a cheaper SKU down the line.

    #1 7 months ago
  2. M. K.

    Cheaper console? I don’t think so. I’d welcome a Titanfall bundle any day :(

    #2 7 months ago
  3. Dragon

    Good decision. However, it remains to be seen exactly what is cut out to decrease the price. People would like Kinect, but I am not sure.

    #3 7 months ago
  4. tezzer1985

    They will only cut the price, if it has no disc drive, or Kinect.

    At least they are acting quicker then Sony did, when the PS3 was over priced.

    I have both new systems, and all I really wanna know is, where are the GAMES!!!

    #4 7 months ago
  5. Francis O

    I knew they were going to do this. $499.99 is not sustainable in the US market.

    You’ll get the early fans to buy it, but after that sales will be sluggish.

    #5 7 months ago
  6. Fin

    If they release a same-spec, but smaller/cheaper version within a year of launch, surely the original was rushed to market?

    #6 7 months ago
  7. OmegaSlayer

    Desperation One.

    #7 7 months ago
  8. Erthazus

    Titanfall is not really a huge system seller as everyone thinks. I can buy it on the PC and my jaw is not drpped after few recent details about the game’s multiplayer.

    #8 7 months ago
  9. KineticCalvaria

    But… but… Pachter said its ‘dumb, dumb, dumb!’

    @1, yeah I’ll pass and get the PC version, as Erth says I don’t think Titanfall is going to be that much of a system seller.

    #9 7 months ago
  10. Sylrissa

    They’ll probably take out the Blu-ray player to cheapen it

    #10 7 months ago
  11. zoopdeloop

    One can already tell Sony will follow much sooner than expected

    #11 7 months ago
  12. Moonwalker1982

    @OmegaSlayer

    Sigh…it really is becoming tiresome, Everyday i see people bitching about Xbox One here.

    ”First lower the price so it can compare to PS4..then we’ll talk”. So then they DO come with news about a cheaper Xbox One and what do you say….”Desperation One”.

    Hilarious.

    I am not gonna wait until October (according to that rumor) to get one. Soon as i have the rupees i am going to get one.

    #12 7 months ago
  13. Sylrissa

    As I’ve said since before the X1 launch, if they drop the kinect I’ll get one as KI and Project sparks look quite good, but not until then.

    #13 7 months ago
  14. Gheritt White

    Price isn’t the reason I’m less tempted by the XB1 than the PS4 – it’s the inferior hardware and uninteresting exclusive titles that make me want to avoid staying with MS this gen.

    #14 7 months ago
  15. Silent Killer01

    I smell a DRM scheme.

    #15 7 months ago
  16. Moonwalker1982

    So this one is going to be a cheaper model, but also the current model will be cheaper and priced at the same price as PS4? So how much cheaper will the new one be then?

    #16 7 months ago
  17. Xbone

    @Silent Killer01 If it will be truly discless, that just further proves that they will indeed turn back the DRM switch sooner or later.

    #17 7 months ago
  18. mr_capello

    so 399 for old model and 350 for the new one ?
    probably with the option to buy an expensive external disc drive for more than 50$
    they could sell the one without disc drive with a loss and be confident that they make it back by their, compared to retail, unrealistic priced digital games.

    but if the rumor is true and this model drops around november retailers will probably will start giving discounts on the ps4 and the old model anyway so I think the advantage is minimal

    #18 7 months ago
  19. Joe Musashi

    Competition is good. Keep these companies hungry for your dollar.

    JM

    #19 7 months ago
  20. Major Mayhem 70

    Your absolutely right #5. Let the hardcore buy it first, when sales get stagnant, drop the price. PS3 did it with their $600 price tag and X1 looks to be preparing to do it with their $500 price. Competition is grand so let them compete. We can only benefit from it.
    I think the disc drive is going to be ousted. Kinect stays. When MS said that they will be watching Steam boxes closely, they meant it. Pull the drive and compete with them too. Kinect stays for the other features that the X1 offers. My opinion of course.

    #20 7 months ago
  21. OneLifeCycle

    Thanks for being loyal to Microsoft. Now here’s a cheaper version that you may have preferred not even a year later.

    Yeah, I think MS is scrambling to pick up more market-share but they’re pissing off current customers in the process… Maybe the stats are in their favor. Most pissed off customers will simply deal with it and stay with them. This entire XBone release has been a circus.

    #21 7 months ago
  22. Cobra951

    If they go disc-less and discontinue the current model to save money, my decision on which console to buy will be much easier. The PS4 wins by a landslide. Gamers already decided as a group that both disc games and the lack of always-online DRM are essential in consoles. If Microsoft abandons either one of those requirements, they fall out of the running. I really don’t think this is going to happen, though.

    Kinect, on the other hand, can go the way of the dodo, for all I care. Here’s a way to make it cheaper without ruining it.

    #22 7 months ago
  23. OneLifeCycle

    @Cobra951 Exactly. They’re doing all the wrong things except what many of the gamers have already voiced. We don’t want Kinect! And still in their stubbornness they may redesign the entire thing without something else but still wit the Kinect!

    They’re so damned stupid. To the point that it’s costing them market-share which in turn is costing them money. Yeah, that’s a great way to run a business! Dumb asses.

    #23 7 months ago
  24. OneLifeCycle

    Oh yeah, and here’s the catch 22 of it all. They said before the release of the current XBone that they would never release a Kinect-less XBone. So if they do, they’re shitting on their loyal customers and making a joke of their public relations team. In reality though, they already did that when they said XBone requires Kinect to function and then said it could be dis-Kinected.

    It’s like Microsoft is a new company with zero experience. They keep dropping the ball like a 6 year old flag football player.

    #24 7 months ago
  25. mistermogul

    If this rumour is true (which wouldn’t surprise me) and I’d already bought an Xbone, I’d be seriously quite pissed knowing a newer, updated model is just around the corner.

    #25 7 months ago
  26. mr_capello

    they would have to change the whole interface to make a non kinect xbox one work
    right now using it with a controller is just awfull
    and I’m 100 % sure if they could have changed that as easily as the whole drm snafu they would have
    but building a UI that feels fresh and new isn not that easy I guess

    #26 7 months ago
  27. mistermogul

    @OneLifeCycle — In all honesty MS have been dropping the ball in all areas of their business for over a decade now. They’ve been playing catch-up and mostly doing things worse in the process.

    Look at how late they were with zune, WP7, Surface etc etc. By the time those products launched the competition already had the market sewn up. Now it seems they have been trying really hard for a year to bugger up their Xbox brand.

    The sooner Ballmer is out the better.

    #27 7 months ago
  28. mistermogul

    @mr_capello – I think there’s a major UI update planned for the spring though I’m not sure if I made that up or heard it somewhere?!

    #28 7 months ago
  29. Legendaryboss

    @mistermogul That is rumored for March.

    As for the story at hand this does seem sudden, that would be less than a year. But that would make things even on the price level: this should be interesting. Meaning someone will have to step up their game.

    PS: I managed to log on to my original account, two accounts now perfect.

    #29 7 months ago
  30. absolutezero

    Ok so we have a disc-less version of the console presumably its going to come with a larger internal hard drive to deal with the all digital nature of it. So is the rumoured update going to fix being able to actually see the capacity and whats taking up how much space? Let me delete things as I see fit?

    Is it going to fix Skype, Party and game integration? Is it going to streamline the sheer amount of menus and fannying about just to see who the fuck is online on your friends list? Let me connect an external storage solution to lessen the impact of such large file sizes?

    I doubt it. I imagine that the original version of this console was meant to come out in March. Links up with the update and what we have heard before about the release of the console in the first place. I can’t wait for a few years from now so we start seeing reports of this consoles gestation, it must have been chaos.

    #30 7 months ago
  31. rasmithuk

    Usually I wouldn’t bother commenting but some of the stuff being said makes no sense.

    First dropping the blu-ray drive makes no sense. Doing it would only save them $10-15 and it’s just not worth all the hassle it would cause to change a device after launch. Any drop in price will come from a decrease in production costs, or by them selling at a loss. I wouldn’t be surprised costs drop $50 by November, so they could match Sony’s (rumored) $50 loss per PS4 and bring the cost down to $400. At that point Sony could either stay at $400 and break-even on the hardware or drop it by $50 to stay the cheaper console.

    Secondly the DRM conspiracy theories make no sense. Both the consoles already have a DRM system to protect games brought digitally. Anyone can play on the ‘Home’ console and you can play it anywhere you can sign-in (requiring a network connection).

    The only reason the original Xbox One design had daily check-ins was because every physical game came with a digital copy, which had to be revoked if you sold the physical one. Without check-ins you could buy a game, install and then trade-in on the same day, not something the publishers would have been happy with.
    Since this is no longer the case there’ld be no need to change the system that’s already in place.

    And the arguments that dropping the price after a year is going to annoy people is just silly. Everything drops in price. If anyone buys a Steam box this year, it’ll drop more than $100 in the first 6 months of owning it, let alone a year.

    #31 7 months ago
  32. OneLifeCycle

    @rasmithuk I don’t have a problem with price drops after a year. That’s completely acceptable but we still have over 10 months to go until we reach the year mark. =)

    #32 7 months ago
  33. antraxsuicide

    @OneLifeCycle Eh, Kinect isn’t a problem. The original one sold 25M units, and the new one is rating very high among people who own the X1. Kinect is a good way to distinguish the systems (since the PS4 and X1 are basically the same console).

    As for dropping the price of the original console once the new model comes out, that’s to keep people who like physical discs (and GameStop) happy. Then the X1 (in either model) would be priced evenly with the PS4. And notice how this release date coincides with the X1′s (rumored) October launch into another 10+ regions? Not a coincidence. Those are mostly regions where price is the main factor in purchasing tech. In the US, people will pay anything (e.g. look at iAnything or the PS3). In the rumored October territories, people buy what’s cheap.

    @People who think TF won’t sell systems: you’re insane. Titanfall is the game that won more awards and got more hype than any other game at E3 last year. It’s the game that absolutely eclipsed Destiny in buzz. No one’s talking about Destiny; everyone’s talking about Titanfall.

    Personally, I think it’s a great idea. It’s a very quick price drop, and it’d be timed for another big launch.

    (This is off-topic, but did anyone also notice that the 1st rumored launch in April almost coincides with Titanfall’s release? Definitely not a coincidence :D )

    #33 7 months ago
  34. OneLifeCycle

    Personally, I think these additional XBone variations were already in the pipeline for a later date but Microsoft is scrambling to increase exposure to the XBone and thus pushing the release of these arguably more attractive versions up a considerable amount.

    It’s like an overwhelming amount of suppression fire when all they need is one, accurate shot to Kinect.

    #34 7 months ago
  35. OneLifeCycle

    @antraxsuicide Kinect by itself isn’t a problem at all. It’s the bundling of it without the option to opt out that is the problem. But yes, you’re right. Kinect may be a great device and many of those that have it may be happy. I believe it still is a problem to include it as they have done. I mean, it makes the console $100 more than their direct competitor.

    Look, I’m sure it’s cool, but I’m not interested in it and there are many like me. There are also those who were more loyal to MS than I was a bought the XBone anyway and have not once connected the Kinect. This time, I went with Sony. For me, they were clearly the better choice.

    #35 7 months ago
  36. rasmithuk

    @OneLifeCycle True, but I don’t think they’ll be a price drop until the end of the year.
    If Sony had outsold them more that 2:1 they might drop it, but that doesn’t seem to be the case at the moment.
    Here in the UK you can get both consoles easily now and Sony claimed this week that they’ve outsold the XO by 1.5:1 . If that’s repeated world-wide, for a console that’s $100 more expensive that’s not bad at all.
    Both will save their price cuts for the next big scuffle, December 2014.

    #36 7 months ago
  37. antraxsuicide

    @OneLifeCycle They don’t need to do that because it fractures your user base. It’s the same problem that hit the original Kinect/PSMove/PSEye, but not the Wii motion controls. If everyone’s got the device, then you can make things for them.

    And I’m not talking about games. I’m talking about UI features or apps. MS will eat the $100 before they cut Kinect.

    #37 7 months ago
  38. rasmithuk

    @OneLifeCycle Dropping Kinect would only take $50 off the price.
    Xbox One sells at cost, the PS4 at a loss (rumored to be $50).
    Why Microsoft chose not to sell it at a loss, as is the norm, I’ve no idea, but they did.

    Since it seems Sony were going to bundle the camera and then decided not to at the last minute, they were probably thinking they’d be the same or the PS4 slightly cheaper if Sony sold it at a loss. Of course this isn’t what happened, but I’d expect PS4+camera to be the one the push this December to try and catch the ‘family buying a console’ market.

    #38 7 months ago
  39. OneLifeCycle

    @antraxsuicide They fractured their user-base when they forced it one everyone. For example: I’ve owned every Xbox since day one. I now own a PS4.

    But yes, I understand what you’re saying…

    #39 7 months ago
  40. OneLifeCycle

    @rasmithuk The actual cost of the Kinect isn’t really the issue. It’s the perceived cost. One console has a motion sensor, the other does not. The one with the motion sensor is $100 more. It’s pretty obvious why people would think the Kinect is costing them $100 more.

    #40 7 months ago
  41. Kane

    All microsoft should do is write off the developmental costs of the kinect. Lower the price as a whole. Win win for both sides.

    #41 7 months ago
  42. game_on

    A disc-less device would be fine for me, one less component that can break down. And who needs those old-fashioned retail boxes anyway, digital download ftw.

    #42 7 months ago
  43. Djoenz

    Someone on Gematsu.com made a smart remark.

    1. Retail library is much larger than Digital store so you wont get all the games digitally except if XboxLive gets a major udate.
    2. Microsoft stated they would improve on pricing on their digital front, but how much?
    3. HDD must be 1tb at least.
    4. Download speeds better be fast on their front.
    5. They better update day one games.

    If they adress these issues it could work. Microsoft could do massive damage.
    Insightful aye?

    #43 7 months ago
  44. boiled lobster

    I think they are targeting two different audiences. The white unit is obviously aimed at core gamers who want a console, not a hub in the living room. The onyx unit should appeal to just about everyone else, from audiophiles to movie buffs to casual gamers, people who want a ‘hub’ to consolidate / coordinate living room electronics.

    The one is not better than the other, but each is tailored to suit a different audience.

    #44 7 months ago
  45. geobyss

    I’m not getting a console unless it’s diskless.

    #45 7 months ago
  46. game_on

    @Djoenz
    True, if they launch a disc-less device, they better make sure (almost) every game is available as a digital download.

    #46 7 months ago
  47. abdooltk

    I want this game so badly new demo
    http://www.youtube.com/watch?v=_UWtUf6XFnU

    #47 7 months ago
  48. antraxsuicide

    @Djoenz That would help push it in Western markets.

    Honestly though, it’ll be mostly for Asian markets. Asians don’t usually have the space for hundreds of game boxes, and they don’t have slow Internet either. They’re the market that wants Vita TV, streaming boxes, and disc-less consoles the most.

    Someone on GI Biz said a few months back that if MS is smart, they’ll release what amounts to a set-top box for places like Japan. Charge $299 with an Internet subscription, and really push the F2P software. It’d sell like crack.

    #48 7 months ago
  49. sb319

    The cheaper Xbone SKU definitely WILL have an optical drive.
    Why? Because optical drives are cheap, and physical media remains crucially important to AAA console game sales. The most obvious thing to cut out will be the Kinect sensor, which would also allow them to hand back some CPU and GPU time to developers struggling to close the gap between PS4 and Xbone version.

    #49 7 months ago
  50. smilertoo

    Microsoft have made a lot of stupid mistakes in the last couple of years but I can’t believe even they would remove the bluray drive and keep the kinect.

    #50 7 months ago

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