Microsoft has chosen to slash the price of the Xbox One to $350 during the holiday season of 2014, then only to swiftly set the price back to $400 in January. We find this odd since the $50 price cut has allowed the Xbox One to outsell the PlayStation 4 in November, and chances are the same scenario might happen in December.

The big question right now, is why Microsoft chose to send the price back up to $400 after decimating the PlayStation 4. Until someone gets the chance to sit down with Xbox head, Phil Spencer, we may never know for certain, but we can speculate.

It is highly likely that Microsoft was losing too much money to keep the deal, so despite the huge success; the company had no choice but to bow out. We've heard rumors that the company lost up to $300 million due to the price cut, but that was the price to pay just to sell around 2-3 million units in 2 months.

Will the price go down again?

Sure, it will, but this time around, it will be a permanent thing. We expect the company to make a big announcement at E3. However, if the company has a lot of video games to talk about at the conference, then a price cut may come before the show. Doing it this way means that video game journalists will be focusing on the game instead of the new price.

Furthermore, we could witness the launch of the Xbox One Slim along with the announcement of a new price. Many analysts believe this generation of consoles might not last as long when compared to the previous, so it means Microsoft may not wait until year 5 to release the slim.

Not to mention, an employee of AMD accidentally made it clear via his LinkedIn profile that the company is working on a 20nm chip for the Xbox One. Such a chip makes it possible for a smaller console that uses less power, so this alone should give us some indication that something big is brewing at Microsoft, and it may not take long for it to be revealed.

At the end of the day though, the Xbox One will return to the days of being wiped in the floor by the PlayStation 4, and until some drastic changes are made, nothing will change.

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