In an effort to increase sales of the Xbox One, Microsoft announced that they will be unbundling the Kinect to lower the price to $399 as of June 9th. Current bundles will remain available at the current price of $499.
The Kinect is a motion control system allows players to use body movements or voice command for varied operations.
Microsoft will also allow Netflix, YouTube, Hulu Plus and other entertainment apps to run without an Xbox Live Gold membership, as it will for the Xbox 360 as well. The membership will still be required for multiplayer, however, but it will also include free game downloads, discounted new games, and other incentives.
Rival PlayStation 4 by Sony, has outsold Xbox One by almost $2 million since their launches in November 2013, and Microsoft executives feel they need to connect more with the player base, and lowering the cost of entry is critical to success.