Microsoft Finds the Tipping Point for the All Digital Xbox One

Posted on July 17, 2019 by Brad Sams in Games, Xbox One with 12 Comments

When Microsoft released the Xbox One S All Digital edition earlier this year, its price left everyone scratching their heads. The new console, that lacked a disc-drive, was roughly the same price as a console with a disc drive and in a few instances, even more expensive.

With an MSRP of $249.99, there was very little incentive to buy the console. Yes, it comes with three games, but all those games are available with GamePass which depending on how you sign up for the service, ranges in price from $1-$10 a month; hardly a great value.

When I first caught wind of the device, known as the Maverick console, I had heard that $199 was the top end of the targeted range of the hardware. Even though Microsoft has officially stated that the console would always be $50 less than an Xbox One S with an optical drive, bundles and third-party sales haven’t made that always true.

But, this week, there was Amazon Prime Days and Microsoft finally started getting aggressive with the digital-only version of the Xbox One S. The company was offering the console, the three games (Horizon 3, Sea of Thieves, and Minecraft) plus the phantom white controller for $199.

Sold as a stand-alone product, the retail price would be over $300 but Microsoft offered this bundle for $199 and consumers finally showed interest. In the Microsoft gaming category, it quickly jumped to the #1 selling item and in the overall gaming category section, it was selling faster than the PlayStation and Switch. Now that the bundle is no longer available, the console is quickly falling off of the charts.

Even with the small flash-in-the-pan success, Microsoft now has the data to know what the tipping point is for the console. At $199, with two controllers ( white included and phantom-white bundled) with three games, the $199 bundle was the first sign of success for the All Digital edition console.

As we head towards the holiday shopping season, I would expect this bundle to return in similar form around that time. Microsoft has finally found the right bundle at the right price for the hardware to make it move off of shelves, the question now is how long do we have to wait for this package to return.

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Comments (12)

12 responses to “Microsoft Finds the Tipping Point for the All Digital Xbox One”

  1. brandonmills

    This always should have been the strategy. Make your money back in the digital store. Take a loss to get the customer in your ecosystem. Microsoft has the pockets to do deals that Sony can't afford to do. It's a bit of a dirty strategy, but it works.

  2. brandonmills where is an Xbox One X digital, because that would really peak my interest.

  3. dmarcme

    I have one Xbox One S and two kids that have to share. I would be very interested in purchasing the All Digital console as a second box, but not at the current price point. The game bundle doesn't interest me as much (I am already a Game Pass subscriber) as the lower price. At $199 I am eyeing it. Below that and I am seriously considering buying a second console.

  4. dontbe evil

    but but nobody want's a discless console !!!


    of course they have to keep both: disc and discless

  5. glenn8878

    Tipping point could be selling it as a desktop computer. Super Cheap PC with free games.

    • tboggs13

      In reply to glenn8878:

      Yes. If they would make both the XBOX and the Windows interface available on the XBOX, I could definitely see it being used as a light duty desktop and gaming machine. Conversely if they would make the XBOX interface available for PC's, we could have a media PC. This is a 2 in 1 niche MS could pursue that no one has made headway in yet.

  6. John Buck

    I would want a digital console if its cheaper, I am just not in the market for a new Xbox one atm, I already have one that works just fine. If they have a Scarlett Digital version that is cheaper, then I'd probably buy that.

  7. Kendog52361

    I think what everybody is forgetting about or mistaking regarding the price is that the regular disc-based Xbox One S, is priced at $299.99 MSRP, it's "actual selling price", on the street, is the whole $249 or so. So, the disc-less Xbox One S is $50 cheaper, based on the MSRP Pricing, but almost nobody is actually selling it for $50 less than it's MSRP price point.

    • maethorechannen

      In reply to Kendog52361:

      If the MSRP was 199 then people wouldn't think that they were getting a deal when they get it for 199.

      I don't think MS "found" the 199 price point. They've always known about it, but they couldn't immediately psuedo-discount the price at launch.