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Microsoft to sell $399 Xbox One without Kinect

By
Tom Huddleston Jr.
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By
Tom Huddleston Jr.
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May 13, 2014, 1:34 PM ET

FORTUNE — Microsoft (MSFT) will start selling a cheaper version of its Xbox One gaming console next month, dropping the Kinect motion and voice sensor attachment from the device.

Starting June 9, gamers will be able to buy an Xbox One for $399, as opposed the $499 price tag attached to consoles that include Kinect, a technology that eliminates the need for hand-held game controllers entirely. The offer, announced Tuesday, closes the gap between Xbox One and Microsoft competitor Sony’s (SNE) Playstation 4, which also costs $399.

Microsoft Xbox head Phil Spencer told customers on Tuesday that the decision to offer a lower-cost option stemmed from consumer feedback the company has received since Xbox One launched in November.

“We’ve heard that you want more choices from Xbox One. You want a wide variety of options in your games and entertainment experiences and you also want options in your hardware selection,” Spencer said.

MORE: Etsy leases large Brooklyn space

Next month, all Xbox One and Xbox 360 owners will also have free access to Xbox apps, such as ESPN, HBO Go, Hulu and Netflix. Those entertainment apps were previously only available to customers with Xbox Live Gold memberships, which cost $60 each year. The company also said that Xbox One owners with the Xbox Live Gold membership will be getting access to Games with Gold, a service offering access to free games.

Spencer was adamant that Tuesday’s announcement is not a reflection of the popularity of Kinect, which he said “remains an important part of [Microsoft’s] vision.” He added: “Many of you are using Kinect for Xbox One every day. In fact, more than 80 percent of you are actively using Kinect, with an average of 120 voice commands per month on each console.”

The company said standalone Kinect units will be available for purchase at some point in the fall should customers decide later on that they want an upgrade.

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By Tom Huddleston Jr.
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