Microsoft Slashes The Xbox One Price By $100 and Makes Video Streaming Free

Microsoft today announced that it will start selling the Xbox One game console without the Kinect sensor, which cuts $100 from the price. That brings the entry price point for an Xbox One down to $399 and you’ll be able to get a console for that price starting on June 9th. More importantly, Microsoft is dropping the need to have an Xbox Live Gold subscription for access to apps and streaming media. Microsoft said that these two changes will bring their prices and structure more in line with those offered by Sony on the Play Station 4.

Being able to use Netflix, Hulu Plus, HBO Go, YouTube, Skype and other popular apps on both the Xbox One and the older Xbox 360 console without having to pay for an Xbox Live Gold membership will save gamers $60 a year ($5 per month). Many Netflix owners were very upset that they had to pay for an Xbox Live Gold subscription in order to access their existing Netflix subscription. Besides, most new smart TV’s, Blu-ray players and and other Internet-connected device like Google Chromecast already support Netflix and YouTube for free.

The change is being linked directly to the departure of former Xbox chief Don Mattrick, who left Microsoft last year after the launch of the Xbox One and all the controversy over trying to make the console always be connected to the internet. Phil Spencer, who was named head of Xbox in March, said unbundling Kinect was important to reaching more fans. “Value is important,” he said in an interview. “Making sure you have an opening price point that can reach as many people as possible is critical.” Mr. Spencer has made some pretty big moves since taking over the division just two months ago and we doubt that you’ll see anyone complaining about what he has done so far.