Microsoft has framed the decision to sell a standalone SKU of its new console as a response to feedback from its existing and potential users – its fans – to drop the requirement of the Kinect motion and voice sensing accessory and to offer more choice. The fact is that while the Kinect functionality is nice to have, for many its value proposition does not match up to the price increment of the Xbox One over the PS4 at this point of the cycle. This has been clear to see, with PS4 outselling Xbox One in Europe strongly and to a lesser degree in its home market of USA as well. As such, the move is primarily about removing friction from the buying process for the Xbox One. The decision to shift entertainment apps outside the paywall will also help its positioning against Sony’s console: online video remains a hugely important feature in terms of device usage and consumer engagement, so having this behind a paywall is counter-productive.Microsoft has confirmed that a standalone SKU has been in the works for a number of months, although the fact that both new smaller packaging or a standalone Xbox One Kinect SKU won’t be available until the later in the year also suggests that this move has been brought forward from the end of the year. IHS believes this is a response to the strength of PS4 sales and also that E3 represents an opportunity for the company to refocus its message on the gamer and regain some sales momentum. A similar opportunity will not come again in 2014 before the holiday sales season.It’s sensible to suggest that a standalone version was always on the table and as such this is not a full strategic u-turn, although the fact that Kinect has been somewhat sacrificed at this early stage will have stung at Microsoft and may not have been possible without a change in leadership at Xbox.

http://www.edge-online.com/news/pre-...-implications/

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