Before the start of E3 in 2013 Microsoft had announced multiple restrictions on the upcoming Xbox One system. The company felt that it would be better to have consumers buy games that could only be setup on the console using a onetime type of key. This caused an uproar in the business and consumer gaming community alike. Stores such as GameStop would not be able to make money off reselling used games -- and owners would have to repurchase the product if it was ever damaged or needed to be transferred to a new console.
Sony announced a restriction free based console system that would also sell for less during the opening of last year's E3 event. This almost immediately catapulted Microsoft into the no. 2 spot for the next generation console war before the products were even released onto the market.
After backlash from virtually all sides, Microsoft eventually relented they would go to a restriction free system several weeks after the damage had already been done. The gaming base had lost faith in the product before it even hit the shelves. With an additional 100 dollar fee tacked onto the system -- Xbox One was setup to fail before it even had a chance to start.
Now, it seems Microsoft is starting to understand that if the Xbox One wants to stay in competition with the PS4 for this current console generation -- they will have to backtrack on the price of the system as well. Despite early promises to developers and Xbox One owners that Kinect would ship with every console, it's clear Microsoft is having to change course and listen to consumers in a report released by The Verge.
"We’ve also heard from people they just like to play games with a controller in their hands," says Microsoft’s head of Xbox, Phil Spencer. "We’ll continue to innovate on Kinect, I think it’s an important differentiator for us, but I also know there are people out there that want to make the choice when they want to make it." The $499 model with Kinect will continue to be sold, but Microsoft will also introduce a standalone Kinect sensor for Xbox One "later this fall."
Now that Microsoft has decided to unbundle Kinect from the Xbox One and sell the console for $399, will they be able to start closing the gap between the PS4 before the end of the race? This summer could be a good indicator on how well received Microsoft is going to be after the next upcoming E3 event.