[KillGore]

Can't believe some people like this idea lol seriously, I guess there will always be a consumer, even if you create the crappiest thing in the world (not saying that his is the crappiest)

[Sho_Nuff82]

The viability and success of this will be determined by what those other services they mention are.

ESPN and Netflix are the big ones (there's no way you get HBO for so little). They'd have to get at least one to justify the $10 increase over the base price of monthly LIVE.

[SmokyDave]

I don't like it but I begrudgingly admit that it's genius and very likely to succeed.

[krae_man]

I am perfectly OK with this method as long as both options will be provided. I'm the kind of person who'd rather buy a $649 iPhone with a $45/month plan over a $199 iPhone with a $80/month plan...aka financially savvy.

I agree.

[Omikaru]

This isn't sub-$100 and Live is not something I'd expect to be useful to late-comers.

Live will be very useful to latecomers considering MS holds pretty much every service the console offers behind it.

It's a very smart business move. Personally I think it's awful for the person paying it, though.

I hope that in next-gen this is only one way of paying for the system, and that you can still buy it outright for a reasonable price.

[AwayFromInfinityx]

It had me until i read monthly subscription. Thats complete bullshit.

sad thing is....this might be successful.

[DECK'ARD]

If it's like Europe, they're sold at a subsidy in mobile network operator's own shops. Question I have for this model in console-land is would a retailer beyond a platform holder's own stores be interested? Would the platform holder share a cut of the recurring revenue with retailer? Or maintain margins for the retailer vs a full-price, non-subsidised box? Just trying to think through whether it could become a more general offer at retail in the future.

Yeah in the longer-term I think they'd extend it with selective retailers offering both and getting a cut. Recurring revenue is attractive.

The sounds like testing the waters for what comes later.

[Psychotext]

I could see this working. People really don't like large upfront costs, even if it ends up costing them more in the long run.

[BootlegSnackz]

Wow. Groundbreaking. Get ready for next gen heartache kids. This is surely a test run for their next gen console. Its probably too expensive for them to sell the normal way. Here's the rundown:

Xbox 720 outright w/ no contract: $800

Xbox 720 w/ a four year contract: $200

Xbox 720 w/ a three year contract: $300

Xbox 720 w/ a two year contract: $400

lol...this is not going to be fun times.

[UberTag]

Curious to see how the iPhone sales model translates to the console marketplace. It's only the most successful electronic device right now in large part due to a low up-front cost and monthly payments, so why can't it work in this space?

Very shrewd.

[Kintaro]

Wow. Groundbreaking. Get ready for next gen heartache kids. This is surely a test run for their next gen console. Its probably too expensive for them to sell the normal way. Here's the rundown: Xbox 720 outright w/ no contract: $800 Xbox 720 w/ a four year contract: $200 Xbox 720 w/ a three year contract: $300 Xbox 720 w/ a two year contract: $400 lol...this is not going to be fun times.

God help us all if this even comes close to ever happening. lol

[Maximilian E.]

What if...

Beefed up Durango, would retail for 599 without a loss BUT.. Can be sold for 199 if buyer agrees on a 2-3 year deal with 59 dollar per month? (or something similar like mobile phone) of course there will be a chance to pay the full amount also..

It feels that there is room for this kind of selling an expensive HW...

Could work..

[Baconsammy]

ESPN and Netflix are the big ones (there's no way you get HBO for so little). They'd have to get at least one to justify the $10 increase over the base price of monthly LIVE.

Yeah, and Netflix would seem pretty attractive. Wouldn't be surprised if it turned out to be Amazon Prime(plus video streaming service) either.

[KillGore]

Wow. Groundbreaking. Get ready for next gen heartache kids. This is surely a test run for their next gen console. Its probably too expensive for them to sell the normal way. Here's the rundown: Xbox 720 outright w/ no contract: $800 Xbox 720 w/ a four year contract: $200 Xbox 720 w/ a three year contract: $300 Xbox 720 w/ a two year contract: $400 lol...this is not going to be fun times.

I wouldn't doubt this. If they see that this plan works, they will just create consoles as expensive as they can be and just sell them under contract. Sony probably would've sold the PS3 for $900 and have it at $400 with a three year contract.

[Cheesecakebobby]

Value of this deal is completely dependent on what you get above and beyond the basic gold xbox live service. There are so many optional services relating to media that might or might not be included in this package. It's just idiotic to start making judgments on whether this constitutes a 'good deal' until you have that information.

Discussion on whether this sort of model in general is a good idea is valid and interesting though. I would go for it if I could tailor it specifically to the services I want/ need, just as I'm not going to tie myself into a phone contract with 3000 texts per month if I don't text. Similarly, if I am tied for two years, I expect it to work out CHEAPER than if I had paid each month for the same services. It's a payoff for the risk I take in not being able to cancel the service whenever I want, unlike a monthly rolling contract or whatever.

[mclem]

So it's fundamentally a hire purchase scheme? Doesn't strike me as particularly novel, even if it is dressed up in fancy terms.

[BootlegSnackz]

God help us all if this even comes close to ever happening. lol

Don't even get me started on the $400 early termination fees

[dragonelite]

Its a tarp...

Next gen console launch next year confirmed!!!!!!!!!
Suckers who do this have to either pay the early leave fee or pay the rest of their contract while will my next gen console. :p

[neptunes]

Pretty interesting idea, it would be cool if they offered it for even lower ($50?) or even free.

On second thought, no this is a bad idea. I don't want MS getting any funny ideas for next gen. Next thing you know we'll see consoles retailing for $700 with no contract.

[DECK'ARD]

It had me until i read monthly subscription. Thats complete bullshit. sad thing is....this might be successful.

Remember the end game, for both Microsoft and Sony, was control of your living room and everything that comes into it.

A monthly charge and low entry cost is basically throwing down the gauntlet for services in the same way 360 threw down the gauntlet for getting the most powerful box in your living room before Sony. The next battle is for the services, not the games.

[Sephiroth503]

This gen we got on disc DLC, DRM, MP check box games, etc.

Next gen is gonna introduce this kinda service for consoles.....Goddamn. People will buy it and make it succeed, just like COD map packs.

[gcubed]

i pin my hopes on consumers not being as stupid as they once were

[Felix Lighter]

For me to enter a 2 year contract like this, I would have to save a lot more than $200 up front. I'm not happy that I deal with this model when it comes to cellphones but, ultimately, I know I will need a cellphone plan for the foreseeable future and off contract phone prices are craziness.

I'm sure the math works out for some people, though.

[Shambles]

Wow. Groundbreaking. Get ready for next gen heartache kids. This is surely a test run for their next gen console. Its probably too expensive for them to sell the normal way. Here's the rundown: Xbox 720 outright w/ no contract: $800 Xbox 720 w/ a four year contract: $200 Xbox 720 w/ a three year contract: $300 Xbox 720 w/ a two year contract: $400 lol...this is not going to be fun times.

This is exactly where consoles are headed. Consoles with contracts, my dear god, time to end all life on this planet.

[Somnid]

Live will be very useful to latecomers considering MS holds pretty much every service the console offers behind it. It's a very smart business move. Personally I think it's awful for the person paying it, though. I hope that in next-gen this is only one way of paying for the system.

See but that's the problem. You might as well buy a PS3 or a Wii who don't hold the paid content behind a pay wall especially if you plan to use as a set-top box.

[BootlegSnackz]

i pin my hopes on consumers not being as stupid as they once were

Be sure to tell us how that works out for you

[Help Me!]

Its a tarp...

The Microsoft bailout, huh?


Handheld gamer 4 life, now.

[AdventureRacing]

Actually seems like a pretty interesting idea even if i wouldn't go for it. Not sure why people are getting so worked up about it, if you don't like you don't have to buy a console this way.

[MightyHedgehog]

so $640 15x12 (180) 180x2 (360) 360+100 (460) 3x60 (180) (640) for 5 years vs 200 5x60 (300) (500) for 5 years

Right, that's my understanding, too. So, it's good for people want a system now or sooner, anyway, with Gold and extra stuff included. It's intended for anyone who cannot afford to simply buy the better deal if they see it since they're close enough to 'paycheck to paycheck' status or just want the simplicity of an all-in-one packaging that they're accustomed to choosing from with cable, satellite, and ISPs contracts. It's meant to be the lowest possible barrier, but it's unlikely to be for anyone on GAF or who can simply afford the best deal they can find because they are willing to pay for the whole thing upfront.

[H3xum]

Oh god no

Please don't let this mobile phone business model stick for next gen

Also, this thread has made me realize all over again how much I hate paying my cell phone bill every month. I think I had come to a point of acceptance but then when I realize how much I play Xbox opposed to use my phone, it feels wrong again

[PsychoRaven]

Wow. Groundbreaking. Get ready for next gen heartache kids. This is surely a test run for their next gen console. Its probably too expensive for them to sell the normal way. Here's the rundown: Xbox 720 outright w/ no contract: $800 Xbox 720 w/ a four year contract: $200 Xbox 720 w/ a three year contract: $300 Xbox 720 w/ a two year contract: $400 lol...this is not going to be fun times.

And that's the kind of shit that will happen. it will. And people will eat it up. People will be like hell yea I can get a 720 for 200 bucks. Course they'll be ignoring the 4 year contract of the monthly fee.

See that's what I think some are not seeing here. This works like this.

Console
Monthly Xbox live fee of 15 bucks a month.

Now compare live now to that price. 60 dollars a year. Divide that by 12. That comes out to 5 bucks a month. With this method you'll be paying 15 bucks a month for live or 180 dollars for that year of live. Hence Microsoft will be more then making the cost of that console back.

[gcubed]

Be sure to tell us how that works out for you

it will fail miserably, but i need something to hold on to

[Chacranajxy]

This is the worst news possible, because you just fucking know this'll trickle over to next gen systems... except the Xbox 720 won't be $100, it'll be $300-400 with a 2 year plan.

I really hate the direction this industry is moving in.

[Orayn]

You know what wouldn't surprise me at all? If the next Xbox lacked a "tard pack" and had something like this instead.

[GeoramA]

Reminds me of the depressing Mega64 video about the new consoles. I really miss the good old days.

Hopefully people don't support this, but I don't see it happening. That $99 price tag will have people buying now, asking questions later.

[BootlegSnackz]

it will fail miserably, but i need something to hold on to

We'll be safe in the warm embrace of Android-GAF.

[Wildesy]

Wow. Groundbreaking. Get ready for next gen heartache kids. This is surely a test run for their next gen console. Its probably too expensive for them to sell the normal way. Here's the rundown: Xbox 720 outright w/ no contract: $800 Xbox 720 w/ a four year contract: $200 Xbox 720 w/ a three year contract: $300 Xbox 720 w/ a two year contract: $400 lol...this is not going to be fun times.

Yeah, not gonna happen. At least, certainly not at an outright price even remotely near what you are suggesting.

[LiquidMetal14]

Not a fan of this.

[Talon]

It's a Roku + Apple TV competitor.

This is really the "Direct X Box" that Bill Gates talked about back in '98. The home set top box.

[BootlegSnackz]

Yeah, not gonna happen. At least, certainly not at an outright price even remotely near what you are suggesting.

Why? The PS3 was $600 and that clearly did not work out well. If they had a contract option many a fool would have hopped on it

[morningbus]

Why are people acting like they are powerless here? Don't buy it. Yes, even if there is a Halo on it.

[UberTag]

This is the worst news possible, because you just fucking know this'll trickle over to next gen systems... except the Xbox 720 won't be $100, it'll be $300-400 with a 2 year plan. I really hate the direction this industry is moving in.

$300-400 w/ a 2-year plan? I think it will be less.
And either way it's guaranteed this will SEVERELY undercut the initial pricepoint of a comparable PS4 model by $100 or more at launch. (Probably $150-200.)

This is effectively Microsoft launching a pre-emptive killshot for the market against Sony's next-gen prospects unless they can transition their audience to this model at this late stage.
It will put the screws to Nintendo somewhat as well but the big N is less susceptible to being hurt by this. People will always buy Nintendo hardware to play Nintendo's IPs.

[neptunes]

Yeah, not gonna happen. At least, certainly not at an outright price even remotely near what you are suggesting.

What's to stop any console manufacturer from charging a ridiculous amount on their hardware when they usually sell them at a loss during that period. This would fix that. I can see Sony adopting this strategy too.

[ShinUltramanJ]

Oh great now we have contracts and monthly fees for consoles. Fuck that. Goddamn smartphone generation.

Cellphones shit, blame Microsoft. Y'know, the ONLY company that's charging you to play your game online?

Who is even running Microsoft's gaming division these days? A bunch of guys in suits? Thank god for Nintendo.

[Sho_Nuff82]

so $640 15x12 (180) 180x2 (360) 360+100 (460) 3x60 (180) (640) for 5 years vs 200 5x60 (300) (500) for 5 years

The 4GB 360 + Kinect is $300, not $200. The $40 difference listed in the OP is the only difference for the duration of any comparison, and it doesn't take into account what, if any, subscription services may be bundled with the subsidized plan.

Cellphones shit, blame Microsoft. Y'know, the ONLY company that's charging you to play your game online? Who is even running Microsoft's gaming division these days? A bunch of guys in suits? Thank god for Nintendo.

Yes, PTL for Nintendo's amazing free online service and their awesome DD catalog.

[Baconsammy]

It's a Roku + Apple TV competitor. This is really the "Direct X Box" that Bill Gates talked about back in '98. The home set top box.

I don't see how it's an Apple TV competitor. Apple doesn't charge a monthly fee. I don't know enough about Roku to know if they do.

[AdventureRacing]

You know what wouldn't surprise me at all? If the next Xbox lacked a "tard pack" and had something like this instead.

Well i would actually like that idea and i think it would actually work out well for me (not that i personally would be buying into that).

[BruiserBear]

it doesn't come with a HDD. but it's still an amazing deal.

Amazing deal?

Adding it all up I'm not seeing how.

[BootlegSnackz]

What's to stop any console manufacturer from charging a ridiculous amount on their hardware when they usually sell them at a loss during that period. This would fix that. I can see Sony adopting this strategy too.

BOOM Headshot!

[GregLombardi]

The way of the future. Bankrupt consumers via monthly contract fees. They'll succeed. Americans will get themselves into debt to service their devices. They already do it in spades.

A smart move.