Speedymanic
Banned
this must be a test. probably for the next-gen. if so, maybe the next X-box will be priced pretty high and Microsoft doesn't want to do a $599 a la Sony. it better be a beast of a console then.
16 COREZ!!!!
this must be a test. probably for the next-gen. if so, maybe the next X-box will be priced pretty high and Microsoft doesn't want to do a $599 a la Sony. it better be a beast of a console then.
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.
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.
*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?
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.
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.
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.
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?
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.
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?
That's exactly what I'm saying.
Edit-The financial community has taken notice of this Verge rumor
Microsoft's brilliant play
I disagree, I think they knew they couldn't compete with the Vita at the same price.
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.
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?
So...$1000 for a full 5 year gen.
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?
Brilliant idea for newcomers. Jump in.
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 shelvesWhat 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.
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.
Brilliant idea for newcomers. Jump in.
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?
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 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. Who knows. We shall see.
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
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?
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.
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....
Does this make anyone recall when Sega offered the Dreamcast for free with a subscription to SEGA.net?
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 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.
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.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.
$460 for a 360, Kinnect and 2 years of Live. Not exactly a horrible deal for the casuals.