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US: $99 Xbox 360 + Kinect bundle coming with two-year subscription ($15 a month)

So I wonder what the Terms and Conditions are going to be on this. What if somebody mods the console to play pirated stuff? Are they going to be able to ban it from the Live services and still collect the money?
 

UraMallas

Member
Very sneaky move. I'd hate to be paying $15 for 2 years when we all know it will become obsolete very soon, assuming its successor comes out next year.

*shrugs* Depending on MS's plans, they might be looking to leverage these contracts with an "upgrade" to the NextBox when that comes out in a year's time. Make late-buyers into early-adopters?
 
If we're talking about an automobile or a camera or a bag of potato chips, it's a question of profit-per-unit vs total revenue.

But a game console is even more complicated. You have the same equation as the commodities I mentioned above along with the additional revenue of retail software sales, Xbox Live subscriptions, downloadable software, dashboard advertising, sale of user data to marketers, hardware peripherals, 3rd party licensing, etc.

Presumably a wider user-base has positive effects on all these revenue sources.

And something tells me MS has spent a bit of time working out the numbers on it all. I would assume that they have a bit of a better idea about how/when to reduce the price than we do.
 

MadOdorMachine

No additional functions
I bet this is the model they want to follow with Durango but they're testing it out with 360 first. The console will be lower priced, but you will be required to have an internet connection. If they position it well, I suppose it could work but the thing is, you already have to pay for Netflix, Hulu, HBO Go, etc. Unless they offer other services - like movie streaming - I don't see the value.

Requiring an online connection also allows Microsoft to control content. This only adds more fuel to the fire of it not playing used games.
 

MadOdorMachine

No additional functions
*shrugs* Depending on MS's plans, they might be looking to leverage these contracts with an "upgrade" to the NextBox when that comes out in a year's time. Make late-buyers into early-adopters?

There's also the question of if you have more than one Xbox. $99 is a great price to compete with Roku, but you shouldn't have to pay for more than one Live account. I wonder how flexible the plan is. If it does allow you to upgrade, that would be a plus.
 

theBishop

Banned
And something tells me MS has spent a bit of time working out the numbers on it all. I would assume that they have a bit of a better idea about how/when to reduce the price than we do.

Coming at the issue from this angle, I agree. Let the business people make the business decisions. I just think it sucks for people who want to buy an Xbox360 (e.g. thebishop), and potentially the start of a bad industry trend.
 
Why reduce the price when sales are not dropping?

Nintendo dropped the price of the 3DS even before the Vita launched (so it was clearly outselling the Vita at that point). Many speculate the Vita coming out at the same price as the 3DS was the reason for the price drop.

In anticipation of a possible PS3 price drop, they could be reacting.
 
Nintendo dropped the price of the 3DS even before the Vita launched (so it was clearly outselling the Vita at that point). Many speculate the Vita coming out at the same price as the 3DS was the reason for the price drop.

In anticipation of a possible PS3 price drop, they could be reacting.

lol, Nintendo dropped the price because of how shitty the 3DS sales were.

PS3 dropped the price last fall and the 360 still greatly outsold it last fall. Why do they need to react to a potential PS3 price cut?
 
Coming at the issue from this angle, I agree. Let the business people make the business decisions. I just think it sucks for people who want to buy an Xbox360 (e.g. thebishop), and potentially the start of a bad industry trend.

Why is it bad?

360 will get a price drop this year, probably towards the Winter.
 
lol, Nintendo dropped the price because of how shitty the 3DS sales were.

PS3 dropped the price last fall and the 360 still greatly outsold it last fall. Why do they need to react to a potential PS3 price cut?

So you are saying that the price of the Vita being the same as the 3DS had nothing to do with Nintendo dropping the price?
 
Nintendo dropped the price of the 3DS even before the Vita launched (so it was clearly outselling the Vita at that point). Many speculate the Vita coming out at the same price as the 3DS was the reason for the price drop.

In anticipation of a possible PS3 price drop, they could be reacting.

Ummm, they dropped the 3ds price because it wasn't selling and retail partners were beginning to get nervous about carrying it.
 
I disagree, I think they knew they couldn't compete with the Vita at the same price.

Yea, because the Vita turned out to be a roaring success. Also, if that were the case, why would they drop the price 4-8 months before the Vita would even release?

Also, Nintendo only sold 710,000 3ds's worldwide during the 3 months before the price drop, so sales were clearly well below expectations. The system simply wasn't selling well, and so Nintendo was forced to reduce the price.
 
I disagree, I think they knew they couldn't compete with the Vita at the same price.

There isn't really any debate about this, there is plenty of information out there from Nintendo on why they did this, including the sales targets they had, the apprehension 3rd parties had for the sales and all the unsold inventory that was sitting in warehouses.
 

coldfoot

Banned
Why are some people who say "only idiots pay retail price for XBL!!!!" when the cost of XBL is brought up, are now saying that this is a good deal?

Assuming no other video services are included, this is a terrible deal because no one pays $25 to get extra warranty on their kinect, and few people pay $25 to get extra warranty on their xbox.
 
Yea, because the Vita turned out to be a roaring success. Also, if that were the case, why would they drop the price 4-8 months before the Vita would even release?

Also, Nintendo only sold 710,000 3ds's worldwide during the 3 months before the price drop, so sales were clearly well below expectations. The system simply wasn't selling well, and so Nintendo was forced to reduce the price.

How the fuck can you argue that they did it 4-8 months in advance of the release of the Vita and then talk about the failure of the Vita? Doesn't it occur to you that 4-8 months before the release they had no idea how well the Vita was going to do.

Also, Nintendo isn't going to come out and say "we're lowering our price to better compete with Sony".
 

Orca

Member
So I wonder what the Terms and Conditions are going to be on this. What if somebody mods the console to play pirated stuff? Are they going to be able to ban it from the Live services and still collect the money?

I'd imagine it's the same as a cellphone (or any other) contract. You're obligated to pay for the extent of your commitment. If you break the terms of the deal (as modding it would do) you might trigger a punishment like a payout, like missing payments on a contract can require you to immediately pay the commitment out in full.
 
i sincerely hope that this will NOT pave the way for future things...

I really don't want to give up gaming as one of my favorite hobbies but if we'll have cellphone like contract situations in the next years then i'm probably out!

Well i guess there would still be PC gaming for me then ;)

Need to see how this develops though before freaking out i guess...
 
Brilliant idea for newcomers. Jump in.

I had a launch 360 which died and ended up going through 5 consoles before I gave up. The 2 year warranty is inviting. but if they include a Netflix or some good media streaming, I'm so back into this. It just makes it easy to get started. I tend to be one generation behind anyways, games are cheaper and I know what to avoid.
 

Eusis

Member
Ugh, like others said I'm fearing this could have an effect on next-gen consoles in order to make some ridiculous super powered machine "affordable". They really should be prioritizing a reasonably strong machine for $300 or 400, especially with the difficulties developers and publishers had adjusting to THIS in the first place.

Though maybe given this is a Microsoft store thing it'll be too fringe for people to notice and buy into, and they abandon it.
 
What is there to fall for?

They end up paying less than 10% more than they would otherwise over the course of two years. That seems fair to me.
If there's not a price drop in the course of 2 years. With this pricing contract, they will continue to get their profits long after the price has been reduced and 720 is on shelves

Sony and Nintendo aren't trying to lock ppl into contracts. They will just lower their prices
 
Ugh, like others said I'm fearing this could have an effect on next-gen consoles in order to make some ridiculous super powered machine "affordable". They really should be prioritizing a reasonably strong machine for $300 or 400, especially with the difficulties developers and publishers had adjusting to THIS in the first place.

Though maybe given this is a Microsoft store thing it'll be too fringe for people to notice and buy into, and they abandon it.

How would it hurt though? They could go balls out with the hardware. The people who can't afford it all at once get on contracts. The people who can afford it and want to save money buy it outright.

Who knows though.
 
Hold on a second! 24 months @ 15 a month is 360 bucks. Plus $100 for the console. That's $460 dollars. How the hell is that cheaper than jus lowering the damn price in the first place?
 

Lynn616

Member
I can see Durango having this pricing model. $499 off contract and $299 on contract or even $399 off contract and $199 on contract.

I think Sony will have to follow this as well or seem overpriced.

If this is the only way we can get uber powerful next gen then I am all for it.
 

Danny Dudekisser

I paid good money for this Dynex!
How would it hurt though? They could go balls out with the hardware. The people who can't afford it all at once get on contracts. The people who can afford it and want to save money buy it outright.

Who knows though.

Does anybody honestly believe that Microsoft would use this arrangement to fund them going "all out" on the hardware, and not just to fleece consumers?

Because I don't remember Microsoft being quite the philanthropist some of you seem to think they are.
 

Agent X

Member
This is actually a phenomenally bad deal for the customer.

Microsoft is already scamming their customers by forcing them to pay $60 a year for online play...something which has been free on just about every other platform over the last three decades. This is just suckering unsuspecting people into thinking they're getting an upfront bargain, and then roping them into paying even more money for something they shouldn't even be paying for to begin with.
 
Does anybody honestly believe that Microsoft would use this arrangement to go "all out" on the hardware and not just to fleece consumers?

Because I don't remember Microsoft being quite the philanthropist some of you seem to think they are.

No, I think they will fleece when they can. I want to benefit with great hardware though. I personally won't sign the a contract. But if other people will, and that enables me to get better hardware, hey, that's cool with me.

Different options for different people with different economic situations. MS, go, go, go!

I never said they are doing anybody favors. They are out to make money, fine by me. If their new way of making more money is to this route, and it can lead to better hardware, so be it.

Or they will use it as a way to make mediocre hardware and do contracts (probably) Who knows. We shall see.
 

Danny Dudekisser

I paid good money for this Dynex!
No, I think they will fleece when they can. I want to benefit with great hardware though. I personally won't sign the a contract. But if other people will, and that enables me to get better hardware, hey, that's cool with me.

Different options for different people with different economic situations. MS, go, go, go!

I never said they are doing anybody favors. They are out to make money, fine by me. If their new way of making more money is to this route, and it can lead to better hardware, so be it.

Or they will use it as a way to make mediocre hardware and do contracts. Who knows. We shall see.

Fair enough. FWIW, what I said wasn't necessarily directed at you - it just seemed to be a common thread in what a lot of people were saying.
 
If there's not a price drop in the course of 2 years. With this pricing contract, they will continue to get their profits long after the price has been reduced and 720 is on shelves

Sony and Nintendo aren't trying to lock ppl into contracts. They will just lower their prices

The last time the price of the 360 was lowered was September 5, 2008.
 

Dany

Banned
I think this is great. It doesn't force the consumer to buy in all at once. Long term it might cost more but for a college kid...this seems fair? no?
 

Danny Dudekisser

I paid good money for this Dynex!
I think this is great. It doesn't force the consumer to buy in all at once. Long term it might cost more but for a college kid...this seems fair? no?

No, because he's already going to be paying for his college education until he's 40, and he's probably too stupid or drunk to realize he's wasting his money. Arguably on both, but definitely on all the random bullshit you get with the 360.
 
I can see Durango having this pricing model. $499 off contract and $299 on contract or even $399 off contract and $199 on contract.

I think Sony will have to follow this as well or seem overpriced.

If this is the only way we can get uber powerful next gen then I am all for it.



pretty much. I wonder if developers would be on board with this. would this help them as well or would it be business as usual?
 

Stat Flow

He gonna cry in the car
No thanks. I don't care about this, as long as I can continue to buy my consoles outright with no problems in the future. Casual consumers will jump in...for whatever fucking reason. I just pray this doesn't fuck with anything else...like outright costs being at a massive (and unncessary) premium to force everyone to go the subscription route. Then I'll be pissed.

Maybe Sony should've used this model with their initial $599 system launch...
 

Brera

Banned
I like the idea.

If they offer the next gen consoles for £399 or £99 plu £14.99 for 24 months, I'd go for the 2 year option....
 

UberTag

Member
I can see Durango having this pricing model. $499 off contract and $299 on contract or even $399 off contract and $199 on contract.

I think Sony will have to follow this as well or seem overpriced.

If this is the only way we can get uber powerful next gen then I am all for it.
The fundamental problem here is that Sony hasn't conditioned their customer base to paying a monthly fee for a "service". Microsoft has. Sony simply has a game-focused discount/Rewards program that completely ignores the rest of the system's functionality. (Heck, it even ignores the Vita.)

I'm really not sure Sony has the capability of matching such a gambit from Microsoft for the Durango. And we're not seeing much from them in the way of forward thinking on next-gen pricing models... unlike Nintendo which unveiled their retailer-driven digital content pricing model for Wii U last week.

I expect we will see this rolled out on a larger scale to all retail partners (already equipped to sign people up to smartphone contracts) supported with a heavy ad blitz in the fall around the time the Wii U launches. I really don't expect it to make a big difference to Nintendo even though it will be positioned that way because Nintendo supporters will always flock to Nintendo's IPs regardless of what the competition is doing.

Lastly this initiative helps to calibrate the X360 product/service pricing model against Apple. Because you know full well Apple's bid for the living room would largely mirror their iOS business model with the iPhone/iPad with a low up-front (or $0) hardware cost supplanted with a monthly service model.
 

Eusis

Member
Does anybody honestly believe that Microsoft would use this arrangement to fund them going "all out" on the hardware, and not just to fleece consumers?

Because I don't remember Microsoft being quite the philanthropist some of you seem to think they are.
I do think Microsoft would do both. Without contracts they'd make a system that maybe costs, say, $350 to produce and sell at $300, whereas with contracts they'd go for a $500 machine that's sold for $200 + contracts to be $600 or $700. Or something, I don't follow these contracts too much but I know something like the iPhone is $600 without one, and I really don't want consoles to cost as much, directly or indirectly, as a damn gaming-capable PC.
 
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