Microsoft has announced a special offer giving gamers $100 towards purchase of an Xbox One if they trade in their old video game consoles. The company’s website states that customers can bring their Xbox 360 E, Xbox 360 S, or PlayStation 3 to select retail stores in the United States and Canada in order to partake in the deal. The offer is valid from January 23 until March 2, and only applies to consoles that are fully functioning, damage free, and without password protection.
The company hopes to attract gamers by giving them a cheaper price. An Xbox One currently sells for $499, compared to $399 for a PlayStation 4 console. Microsoft currently released the latest quarter sales results claiming that around 3 million units were sold. This was during the holiday shopping season and the deal is most likely being offered to help the company profit financially during the coming months. The Xbox One was released last fall and sold over 1 million units within 24 hours of its release.
However, trade in value for a PlayStation 3 currently goes for around $200, making Microsoft’s $100 discount towards an Xbox One less of a bargain. Also, the offer does not apply to the older versions of Xbox 360, which are currently still used by millions of gamers, nor to the Nintendo Wii, which has had a significantly less than anticipated impact on the market. Of course, Xbox 360 games are not compatible with the new Xbox One system, which has led many to continue to buy the older console that is still in production. Nevertheless, the deal may appeal to those who live near a Microsoft retail store and are ready to upgrade to the new model.
Microsoft has limited the trade in to one per customer. The deal is able to be combined with Xbox live but can not be redeemed for cash or gift cards. Basically, the offer is only valid towards purchase of an Xbox One. Microsoft has anticipated that it will still be able to sell millions of units this year after a knock out start. However, the PlayStation 4 continues to be the most popular new system with over 4.2 million already sold. If gamers take advantage of the newest offer than they can pay the same price for an Xbox One as they would for the PlayStation 4, something Microsoft is hoping to capitalize on.
So as Microsoft offers this $100 off deal to make it more competitive with the PlayStation 4, it will be interesting to see how gamers respond. The video game industry is worth nearly $100 billion annually, meaning that companies have a lot at stake when releasing their products, as there are only three major video game producers. Microsoft hopes that its Xbox One, which offers an array of technologically advanced features, will continue to control a large share of the video game market. The company is expecting a drop in sales due to the ending of the Christmas season and the start of summer being right around the corner. However, it hopes the offer will help compensate the slow period. Many may be eager to take advantage of the new deal in order to get their hands on this next generation console at a cheaper price.
By Peter Grazul