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February 01, 2014 AT 10:34 AM
Microsoft is still feeling the heat from being the priciest next-gen console in the field at $500. While the system has sold incredibly well, it's still lagged behind the PS4, and the price gap is a huge factor. While Kinect is often cited as a big reason, or really the only reason, for the price disparity, there have been rumors saying that Microsoft may indeed release a $399 Xbox One in time for next year’s holiday season. The interesting part is that it isn’t the Kinect being shed to cut the price, it’s the console’s Blu-ray drive, meaning the device would be download-only. The new console would also have a 1TB hard drive and a bluetooth adapter.