Microsoft Corporation (MSFT) drops price of Xbox One to $399 without Kinect

Posted May 13, 2014

Microsoft Corporation (NASDAQ:MSFT) has made a couple Xbox announcements today. The Xbox One will see a $100 price cut to $399 in June for a version without the Kinect camera. Microsoft also said that online entertainment apps like HBO Go, Netflix, and MLB.TV will no longer require a paid Xbox Live Gold subscription.

When the Xbox One was launched in May of last year, it was designed to be bundled with the Kinect. The Kinect listens to voice commands and can see which players are in the room. The Kinect can also read your pulse too (pun intended).

Unfortunately, bundling the console with the Kinect made the console more expensive than the Sony PlayStation 4. The PS4 took a lead in console sales as a result.

?To be clear, as we introduce this new Xbox One console option, Kinect remains an important part of our vision,? stated Xbox head Phil Spencer in a blog post. “Many of you are using Kinect for Xbox One every day. In fact, more than 80 percent of you are actively using Kinect, with an average of 120 voice commands per month on each console.”

Later this fall, Microsoft will sell a standalone sensor for the Xbox One if you decide later that you want a Kinect.