Luc Wathieu is Professor of Marketing at Georgetown University McDonough School of Business, where he was Deputy Dean from 2013 to 2017. Prior to joining Georgetown in 2010, he served as Associate Dean of Faculty and the Ferrero Chair in International Marketing at the European School of Management and Technology (ESMT) in Berlin, Germany. He was on the permanent faculty at the Harvard Business School between 1997 and 2007, where he co-taught “The Customer Behavior Laboratory” (later called ''Understanding Customers'') with Jerry Zaltman.
The Xbox Series S’s price is what I have called in my research a ‘no-brainer price’ – a price so low that it suppresses buyer’s incentives to think deeply about differences in features. This price will kill most people’s appetite to actively compare the Xbox Series S with other more expensive, feature-rich alternatives, particularly Sony’s upcoming PS5. Consoles have been a battlefield for 30 years, it’s a mature category where most consumers are becoming price sensitive, less invested in learning about new features. Because Microsoft has a clear advantage over Sony in that new space, they can ‘sacrifice’ some profitability on the consoles themselves, in order to get as many users as possible (including users of older generation Xboxes) to fully convert to the digital game space under their brand.6 July 2021