Microsoft has said that the $349 price for Xbox One is a promotion and is not permanent, after the company announced that it will be lowering back down after the highly successful holiday period. Of course, this lead to many expecting it to be the new price going forwards, and it will, but only to a certain extent.
“It was really about positioning ourselves to have a breakout holiday,” Michael Nichols, corporate vice president of marketing for Xbox told Polygon. “We were as aggressive as we could be to see how people would react.
“The results were staggering, it was a terrific response to the changes we made.”
Nicholas went on to explain the reasoning behind dropping the price again. “Looking at just how much engagement there was over the holidays with usage of the system and the advocacy from our fans, led us to do a new promotion,” he said. “It’s a temporary reduction and we’re not announcing an end date at this point. We want to see how people react to it.”