[ad_1]
Microsoft is working on a 100% digital edition of the Xbox One S, according to new rumors published by the Microsoft insider information site, Thurrott. This unconfirmed device does not have a disk drive and will be launched soon. But it's something we've heard many times in the past and has not been realized yet.
But an all-digital Xbox One S edition makes sense. Microsoft has put a lot of effort into making sure something like this works. And at the same time, he found himself in an ideal gaming market for a cheaper gaming box.
What stands out here is the difference between the console game and the end of the last generation. Six or seven years after the start of life on the Xbox 360, Sony and Microsoft did not intend to sell very cheap versions of their systems to new customers. This was largely because it seemed that these customers simply did not exist.
In 2011 and 2012, people without a console chose to spend their money on iPads and iPhones. Mobile gaming was booming. Even though the consoles were cheaper, each game still cost $ 60. And if you did not like Call of Duty, the band was with Clash of Clans, Subway Surfers and Candy Crush Saga. So, putting $ 400 for a tablet and its free games was more appealing than consoles for many people.
In 2019, however, the taste of the game is once again centered on consoles, largely thanks to the free shooters of the Royal Battle. And that should help sell a lot of Xbox One S digital editions.
Fortnite and Apex Legends generate sales
Mobile gaming is still huge, but it has matured. The same goes for smartphone hardware. Every new iPhone is not as exciting as it was. And many of the best games on the App Store and the Google Play market are still those that came out in 2012.
And traditional developers have begun to emulate and adapt the mobile model to consoles. This led to huge free hits such as the fighters of the Fortnite Royal Battle and Apex Legends.
These two games are among the largest in the world. Apex Legends has more than 50 million PC and console players. Fortnite has 200 million PC, console and mobile players. These are the attractions of the world of video games. And while you can play Fortnite on your mobile, using a controller and a TV gives you an undeniable advantage in its competitive environment.
And what is crucial to understand here is that people want to be competitive. Or, at least, people are spending a lot of money to have a better experience of these games.
Accessory and coin cards both grew strongly in 2018. This is due to people rushing to buy headphones and new controllers.
"Everyone calls this the Fortnite effect," said Marshall Mac Marshall, the head of the Turtle Beach brand, in June. "And that's what we saw – though I would not limit it to Fortnite. PUBG was also at the beginning. It is the scene of the royal battle that moves the needle. "
Consoles sales are moving in this direction. The Switch, Xbox One and PlayStation 4 have all grown year-to-year throughout the past year.
"For 2018, spending on computer equipment has increased by 8%, reaching $ 5.1 billion," said Piscatella. "Console hardware sales drove growth with PlayStation 4, plug-and-play devices, Switch, and Xbox One, all of which saw year-over-year gains. "
An all-digital Xbox One S can laser target the right audience
Now think about who would want to play Fortnite or Apex Legends on a console but who has not bought one yet. What is the main reason they do not have it? Price.
An Xbox One S set with Minecraft sells for between $ 205 and $ 300, depending on the retailer. A PS4 Slim without a game sells for between $ 235 and $ 300. It costs a lot of people who want a console for just one or two games.
By opting only for digital, Microsoft can significantly reduce the price of the Xbox One S. Of course, it can remove the disk drive and reduce the overall size of the box, which will save you a few dollars per unit. But it also eliminates the possibility of buying and selling games of opportunity.
But most importantly, if Microsoft has the opportunity to incorporate a considerable number of players into its ecosystem as we approach a new generation of consoles.
All about the Xbox Game Pass
The all-digital edition of Xbox One S makes a lot more sense if you pair it with Microsoft's Game Pass platform, similar to Netflix. This service allows users to download and play a game library, including almost all versions of Microsoft, at $ 10 per month.
While many consumers can use the console to play Fortnite and Apex Legends, Microsoft could take this opportunity to introduce Game Pass. People who do not like the idea of paying even $ 20 for a second-hand game may think differently than paying $ 10 a month for more than 100 games.
Microsoft has made it clear that it wants to become a digital gaming platform in the future. We're still going to be making high-end console gaming equipment, but its goal is to get more people to benefit from the Game Pass. And it's okay if these customers have access to Game Pass on other devices. But this vision requires the cloud-streaming version of Game Pass, which is on the way. But in the meantime, why would not Microsoft provide an inexpensive way to do it now with an official Xbox One?
Game Pass is definitely a game of my Microsoft to develop its addressable market. And it will be necessary to reach the kind of people who have not yet bought a console for this strategy to work.
The right price
But that depends largely on the price of the Xbox One S All-Digital Edition. For example, Microsoft is not going to win a lot of new converts at $ 200. If it drops to $ 150, puts Fortnite or Apex Legends on the box and includes a play pass of 3 to 12 months, so this could attract a lot of attention.
The main hurdle here for Microsoft is Xbox Live Gold. You need Xbox Live Gold to play online games, even if they are free. This would probably include testing this with a digital only console, but paying to play online is a difficult sell for people coming from mobile.
But Microsoft could make sure that many potential customers neglect the cost of gold if they are willing to sell at an extremely low price. At $ 99, most people would probably not even think about Xbox Live Gold before having the system at home.
And even though he probably would lose money at a price of $ 99, this seems like the right time for Microsoft to become aggressive. Fortnite and Apex Legends are turning many people into console players, and Microsoft has the ability to turn them into Xbox owners and Game Pass subscribers. And if the real long-term fight is getting people into this subscription ecosystem, then losing money on Xbox One S hardware seems like a decent way to spend a marketing budget.
[ad_2]
Source link