The Xbox One is priced too high, pricing expert and author of 'The Art of Pricing' Rafi Mohammed has told Bloomberg.
"You want to get that console in consumers' hands, and then where you really make the money is off of the games," Mohammed said. "So it was really surprising that they charged such a premium, especially when they had a lot of negatives... like the very restrictive DRM, which they did retract from."
He added: "One of the key things is that they really listened to their consumers and they did backtrack ... but I still think the price is too high.
Xbox One's £429 RRP comes at an £80 premium over the PS4.
Mohammed believes Microsoft has the ability to reduce the price of the Xbox One by pulling Kinect out of the bundle, but the platform holder has insisted this won't happen because of its integration in the experience.
Both consoles are expected to arrive this November.
It's not difficult to see that it was pricing which helped Xbox 360 gain a foothold in the market when the PS3 was priced too high for many. Yet in the next generation, Microsoft appears to have allowed the tables to be turned. However much value Microsoft believes the Xbox One offers, selling this to consumers could be a struggle.