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This product image released by Microsoft shows the new Xbox One entertainment console that will go on sale later this year.  Microsoft is seeking to stay ahead of rivals in announcing that new content that can be downloaded for the popular "Call of Duty" game will launch first on Xbox One.  Microsoft says more games will be shown at next month's E3 video game conference in Los Angeles.  (AP Photo/Microsoft)

Microsoft Is Having A Fire Sale

Microsoft has been a stranger to discounts until lately last year where the company released a series of bundles and discounts for its Xbox One console. Today Microsoft is announcing massive discounts on console; the Xbox One just ahead of E3 in a few weeks. The new price tag will sport the Xbox One consoles with a 500GB hard drive, but the kicker; if you are wanting to purchase the 1TB model, they are giving you a $50 discount as well. Microsoft never operates without a motive and with the company preparing for its E3 showcase in just a few weeks, rumors are sure to be flying over night.

How Can This Possibly Help Microsoft?

There are a number of factors that contribute to my theory that Microsoft is planning to unveil a slim model for the Xbox One at E3. Not only does this price drop on the current console support my theory, but it is actually the right move to make if Microsoft plans to do just that. No one in their right mind is going to pay you top dollar for older model console, when they can purchase the newer slimmer model for the same price. So in order to sell out of the original stock and get them into homes, you have to price the older model generation aggressively. This makes way for the newer generation model Ones, where Microsoft canĀ go back to charging $399 for the time being.

What Else Can Microsoft Do To Catch up To Sony?

If Microsoft does truly intend on making a newer more powerful system such as the rumored Scorpio, they need to really make some adjustments. Removing the Blu-ray player would be a great start and big save on cost. Making an all digital system would actually be better for them and cost consumers less money at the cash register. Increasing the internal hard drive size to something adequate such as a 2TB-4TB would be effective and appropriate. Lastly I would prefer a radical redesign to show consumers that they are not purchasing the same product as the last gen.

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