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.
If there were no differences to consider other than price I would be pre-ordering an Xbox One for this fall. XBone has a ton of interesting looking exclusives like "Sunset Overdrive" and "Quantum Break" that I would love to play but because of all the features that are simply ahead of their time or are obnoxiously intrusive and impose a kind of DRM never seen in the console market I'm leaning toward Sony this generation.
The "value" would drop significantly if you put out a version minus the Kinect. I don't want a damn kinect, never have. I shouldn't be forced into buying it and forced to have it always connected in order to play my games. When the Xbox 1 is destroyed by PS4 in sales I think they might change their tune.
Don Mattrick COD - Chief Officer of Douchery
Thousands of dollars? Yeah right