US analyst Michael Pachter believes that Microsoft IS prepared to lower the price of Xbox One if it falls too far behind PS4.
However, following last night's dramatic about-face the analyst reckons that Microsoft could yet salvage the situation and achieve next-gen dominance.
"Microsoft intends to offer a more robust hardware bundle than Sony will offer, and Microsoft is convinced that consumers will ultimately appreciate the value proposition presented by Kinect," Pachter told investors, CVG reports.
"Microsoft has not done a particularly good job of communicating the value proposition to consumers, but today's announcement will remove an impediment to the company's ability to get its message across.
We are confident that with six months of focused messaging, Microsoft can fully level the playing field with Sony, and we expect the Xbox One to sell as many units as the PS4. If we are wrong, we think that Microsoft is prepared to lower price next year."