The lights are on
Do you trade in or sell your games? If not, the Xbox One's still unclear restrictions on second-hand games might not bother you. Do you live in an area with blazing, stable Internet? If so, you might not be concerned about the 24-hour check-ins required by the Xbox One. Even if those two issues haven't deterred you, there's one last thing to consider: price.
Sure, Sony is taking a different road than Microsoft with regard to ownership, but the biggest piece of news was the price. The PlayStation 4 will be offered at $100 less than the $499 Xbox One. For those consumers that decide not to purchase the optional camera, that's a big difference.
Today, Xbox president of interactive entertainment Don Mattrick addressed the cost discrepancy. "We're over-delivering value against other choices," Mattrick said in a conversation with Bloomberg TV. "$499 isn't a ridiculous price point. We're delivering thousands of dollars of value to people."
The conversation moved on after that, and Mattrick didn't go into detail about where the additional value was being generated. It would be unsurprising to learn that the Xbox One manufacturing expenses are more than $499 per unit. Video game hardware is typically a loss leader, with licensing fees for software making up the difference over time. We'd be interested to hear more about the valuation, as Mattrick's "thousands of dollars" seems high.
What do you think, does the $100 price difference make you hesitate? How would you view the price if Microsoft were to drop the used game and online connection restrictions (something unlikely to happen)?
[Source: Bloomberg TV]
Email the author Mike Futter, or follow on Google+, Twitter, and Game Informer.
Seriously with the current value of the dollar a hundred dollars is practically nothing. You can barely get two pairs of decent jeans for under a hundred bucks. Go on a decent date and it's near or over a hundred bucks. So I really don't see people shunning the XBONE for a hundred bucks. Also, if you're already paying your cable provider for a DVR you can save some dough as XBONE is your new DVR.
I've had the Xbox 360 since 2008, and this next gen I was going with Sony. But it was the exclusive titles on the Xbox One that drew me in.
I understand the controversy over the Xbox One, and I was totally opposed to it, but then I realized that my internet connection is blazing fast, and they're allowing used games to be the decision of the Publisher.
Somehow I feel that publishers will not restrict used games on the Xbox one, as the bad rap associated with that is something that could bring a company down.
But even being an xbox fanboy (since 2008) I question what will happen when the console doesn't check in for 24 hours. (After all I live in FL...Hurricanes.)
Ahhh, spin doctors at work.
1000s of dollars worth of value.....if you have a subscription to Xbox and to the content provider. Good one Dick. oops, I mean Don.
Playstation said they chose the $399 price because not all consumers have a ton of money. They wanted to make it affordable for us gamers. Playstation is hearing us out while Microsoft just does what it wants.
Microsoft has a huge PR problem this generation, and they are tripping over their own arrogance. Yes manufacturers shape the market to an extent, but if you aren't appealing to the consumers who find value in your good or service then you're missing the mark, and the callousness with which the spokespeople have dismissed the concerns of consumers is mind boggling. If you don't have a steady internet connection just play the 360? Thousands of dollars of value over the competition? Screw you if you don't like the used game policy that we have done a terrible job explaining because we don't want to give out concrete information that we know will not go over well with our consumers? Look at the numbers Microsoft, read the comments...yes we won't know until actual sales take place, but in the world of preorders and public opinion you're losing by quite a lot.
He sounds like a vending machine from Bioshock. VALUE!!!
Remember when the PS3 came out? Yeah, Sony was saying the same things they're saying now. Yes, it's a $100 cheaper than when the PS3 launched, but the economy's changed for the worse.
Please, just stop saying things that aren't true, Microsoft. If I want to watch TV, I would turn on my cable box. If I wanted a Kinect, I would buy one on PC, because the mods are the only reason why a Kinect is worth having.
The way I see it is they are assuming it's $1000's is for the following reason
console - $500
Xbox Live subscription (in case you intend to take advantage of all the video services, music services, the cloud storage, and multiplayer, so in otherwords, you'll probably have it if you have an Xbone) - $60/yr (assuming console will have a 10 yr lifespan) - $600/10 yrs
Services (netflix, amazon instant, cable, and other services) - As little as $100
Games - This one is tricky, but we'll go with 1 game a month for 10 years, that's 120 games purchased (full retail price games, not counting XBLA games) - $7200
So, if I've done my math right, let's see how much value there is in this console: $8400, BUT, that's all out of pocket because, YOU , the consumer have to pay for the console, your internet service, your added services, the games you play, and your XBL account so you can play online. So, no, you really aren't getting a value if you think about it. No Console is a real value at all because you have to spend crap tons of money on the console. The real value comes from the games you want to play, and by my count Sony has around 40+ exclusives for the the first year of the PS4, versus 15. As I said, if you enjoy the same CoD, GoW, Halo trinity so much, yes, the Xbone will be a better choice, but if you like a huge variety with some great experimental games, the PS4 will probably be the better choice. I myself am going Sony this time around with the PS4, once the Xbone comes down in price, I'll consider buying it.
It's not the $100 difference that makes me choose PS4. It's the facet that the Xbone needs the gimmicky kinect to even function. Give me a choice to purchase one w/out it and I may consider buying one. Kinect is garbage and it will be no different this time around. Why else would they be pushing for it so hard? Because no one buys the damn thing.
too late microsoft just bought a ps4 today lol