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.
Funny how Microsoft has seemed to make enemies with everyone. Apple, Sony, and Most importantly, the owner's of this magazine....
Put a fork in the Xbone: it's done.
The price difference between the One and the PS4 is only $100 in the US. $400 is about €430, which makes you wonder why Sony is willing to take such a hit in the States.
Source: Maddox ;).
I will not buy X1. I really want to play Forza 5 but I don't want to support the ignorant.
This article actually made me laugh. Not sure if this is out of pure desperation or just trying to combat some of the negative publicity out there. And coming from the same guy that tells a person who serves his country on a Navy Nuclear Submarine and doesn't have internet connection, "Hey we have a game system for you, it's called the Xbox 360." News flash Don, there is a game system for that guy, it's called the PS4.
We have a saying in the South, "Don't piss down my back and tell me it's raining Don." Hey, if you want to buy an Xbox One, with a growing number of the gamer community knighting it the "XBone" than more power to you, knock yourself out. But don't come out with this off the wall statements and not back it up with anything.
I actually think that Microsoft after seeing themselves be eviscerated in pre-order sales is scrambling to think of a way to win people back, but sadly I believe PS4 is going to take over and dominate the market just like the PS2 did, and Microsoft will by a decade from now go the way of Nintendo. By that I mean still be around and have a couple of good games but not really a contender.
Yeah, that's right. We should all be on our knees thanking ol' Don and co. that they're not charging us thousands of dollars for a system that can't play used games, can't work offline, won't work without Kinect which many of us don't want and have to waive our rights to a class action lawsuit just to use it. Yeah, thanks Don. Great value.
It, and all your media (games, movies, everything) have no value once they stop supporting it. All that money to basically buy something that has an expiration date.
Hmm, It IS Thousands of dollars of value... When Compared to the Solid gold, diamond encrusted Xbox One.
$499 is still excellent value for a system like that. Sony has an even better price (minus the camera) at $399. I'll be buying both of them so I'm not bothered.
I honestly don't care about the price. I have a stable job at the moment and I could start saving up for both consoles. I am getting a next generation Xbox with a Kinect Sensor. With PS4 I am getting a next generation console with an amazing lineup of games. It is best to try out both. Xbox has some exclusives that I just cannot ignore, and PS4 as well.