Microsoft throws Kinetic under a bus, slashes Xbox One to $399 • The Register

Another encouraging example of Microsoft market pragmatism; also see Microsoft Had No Choice but to Yank Kinect From Xbox One (Wired)

"The new package is a big rollback for Microsoft, which had previously insisted that Kinect was essential to the Xbox experience. Initially, the One console wouldn't work without Kinect attached, although Redmond rolled back that "feature" just before the launch after privacy concerns were raised.

You can still buy the full Xbox One package with a Kinect controller for the standard price of $499, but by offering a cheaper version Microsoft can at least compete head-to-head with the Sony PlayStation 4 on price. Xbox sales have been lagging behind Sony's worldwide, and the Japanese firm is spanking Redmond's console in the US market that Xbox considers its own, and it's clear this gap has some in Microsoft management worried."

Microsoft throws Kinetic under a bus, slashes Xbox One to $399 • The Register