A contract tied to your credit, thats how. If you don't pay up monthly, it'll go into collections and eventually ruin your credit score so you can never finance anything in the future.
-
Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
US: $99 Xbox 360 + Kinect bundle coming with two-year subscription ($15 a month)
- Thread starter VOOK
- Start date
A contract tied to your credit, thats how. If you don't pay up monthly, it'll go into collections and eventually ruin your credit score so you can never finance anything in the future.
ToLateToLove
Member
Monthly payments. Optional amount, minimum $15. Something like that.xxracerxx said:But that was a one time expense, correct? Or did you make payments for it?
somuchwater
Member
I wonder if this will eb US-only. Are there any Microsoft stores in Canada?
There will be soon, but there are none here yet.
Monthly payments. Optional amount, minimum $15. Something like that.
Ahh, and what would have happened if you couldn't make that minimum payment for the month?
I didn't understand your ecosystem comment then, I thought you meant more of the payment plan to us the product.
If you are talking about companies wanting to lock in brand loyalty then that is an every company playbook move.
Wrong again, young one.
Brand loyalty is not the same as locking someone in an ecosystem. Leaving a brand is simple. An ecosystem? Not so much.
Captain Tuttle
Member
It does if they can resell them. Collect used equipment, refurbish, resell. Make same 200-600 dollars on the same machine. Sure theres parts, labor, and shipping. However with this method they could suppress the second hand market.
Yeah, that's not going to happen. I think this is the smart phone model, not the cable box model.
Ahh, and what would have happened if you couldn't make that minimum payment for the month?
Then you would be charged a late fee and if you miss the next payment then MS will suspend your service until your payment is received. After those 2 late payments and you still haven't pay them off, MS is going to send your bill to a collection agency which effectively ruins your credit.
Seriously guys! is it that hard to understand how is going to work? Is like getting a contract with Cable or a Cell Phone service...
Speedymanic
Banned
I think he's saying that this Live+extras will constitute a seperate service from Live that will cost $15 a month (3 times the price of Live). The hardware is the trojan horse.
I see.
From the perspective of a consumer, these $15 monthly fees would probably "feel" like service charges, not payment plans on the hardware. Once the $15 monthly fee goes away, so, too, does their system's media center capabilities and the ability to play video games online.
The pricingp lan is designed to remove sticker shock while conditioning the user to respond to the recurring charges asthough they're associated with the services.
The user may even do a quick calculation and think they're getting a good deal by paying only $60 a year as opposed to the $180 a year divided into 12 monthly payments of $15 they were before.
The recurring service charges and the upfront fees get confounded from the perspective of the user
They really don't, unless you're stupid or can't be arsed to read whatever it is the hell you're reading. I have zero sympathy for those people when they realize they've just been fucked over, all the information is available when you sign up, it's up to you, as the consumer to make sure you know what it is you're signing.
I do like that you're arguing for people's stupidity, heavens forbid they learn a lesson and actually start to read up on what they are signing and what exactly the charges are during the plan and what they will be after the plan is over.
Then you would be charged a late fee and if you miss the next payment then MS will suspend your service until your payment is received. After those 2 late payments and you still haven't pay them off, MS is going to send your bill to a collection agency which effectively ruins your credit.
Seriously guys! is it that hard to understand how is going to work? Is like getting a contract with Cable or a Cell Phone service...
I was asking in his particular case when buying a PS3 on payments, not this service.
ToLateToLove
Member
First 1 or 2 reminders. Then the invoice goes to a collection agency and if you don't pay them it goes to the government agency responsible for debts etc. Similar to any other unpaid bill.xxracerxx said:Ahh, and what would have happened if you couldn't make that minimum payment for the month?
I'm always surprised that stuff like this works so well -- or at least it seems to. From my perspective you're just taking a loan and paying more for whatever you want.
But since it does seem to work well I can see at least MS and Sony offering subscription-supported "deals" like this from the beginning for 720 and PS4.
But since it does seem to work well I can see at least MS and Sony offering subscription-supported "deals" like this from the beginning for 720 and PS4.
Accsess to those are free everywhere else though...(if ur ISP includes ESPN3).
So Live, now is worth the $60 a year fee for free sht?
For me the convenience value of having them all in one place with remote, search, voice and motion enabled is probably ~$75/month or $900/year.
So yeah, I am pretty stoked by $60/yr.
The heck?
It's a terrible idea.
It's $460 for two years of service. And then $15 a month after that.
Wait, what?
Ahh, and what would have happened if you couldn't make that minimum payment for the month?
If only there was some billion dollar industry that used the same kind of 'hardware subsidized through contracts' plan that we could look towards for answers.
If only there was some billion dollar industry that used the same kind of 'hardware subsidized through contracts' plan that we could look towards for answers.
I was trying to demonstrate a point that if you don't pay the fee you get fucked with collections. Tone of my question does not compute over the internet.
Man-is-Obsolete
Member
This would have been a better move at the start or midway point of the console's life cycle, at the end of it the value just isn't there. They say they are positioning themselves to be competitive with Roku, Apple TV and others, but those are a $100 with no fees except for the ones paid to content providers such as Netflix and Hulu (which you would still have to pay for the subsidized Xbox). Not to mention I am sure the PS3 will drop in price this year as well and you can accomplish all of those things and some (Blu Ray player).
Seems like Microsoft is trying to add value to the 360's end life by trying to sell it as a media hub. Monthly fees on top of content subscriber fees I don't think is the best way to do that. But I am sure they feel a little threatened by the PS3's selling power AFTER the next gen begins because it won't just be a cheap system to play PS3 games it will also be a cheap Blu Ray player and media hub with access to many games. Part of the reason the PS2 is still selling is because it is a good DVD player with a huge catalog of games, and the Blu Ray player in the PS3 will help propel it beyond the 360 in sales after the next gen starts. It is sort of like hitting a shot after the game is over, but still a sale is a sale, and both Sony and Microsoft I believe want to continue to sell their current consoles even after the next gen consoles arrive.
Seems like Microsoft is trying to add value to the 360's end life by trying to sell it as a media hub. Monthly fees on top of content subscriber fees I don't think is the best way to do that. But I am sure they feel a little threatened by the PS3's selling power AFTER the next gen begins because it won't just be a cheap system to play PS3 games it will also be a cheap Blu Ray player and media hub with access to many games. Part of the reason the PS2 is still selling is because it is a good DVD player with a huge catalog of games, and the Blu Ray player in the PS3 will help propel it beyond the 360 in sales after the next gen starts. It is sort of like hitting a shot after the game is over, but still a sale is a sale, and both Sony and Microsoft I believe want to continue to sell their current consoles even after the next gen consoles arrive.
gamergirly
Member
Man this feels like violation on top of violation. They really are trying to get the casual consumer and change the pricing structure of next gen already. So what's in it for us dedicated, hardcore gamers? Nothing bc we already bought their vote
Speedymanic
Banned
Wait, what?
Live now costs 180 bucks a year. I can confirm this to be true, I work for MS PR.
Man this feels like violation on top of violation. They really are trying to get the casual consumer and change the pricing structure of next gen already. So what's in it for us dedicated, hardcore gamers? Nothing bc we already bought their vote
Nothing, because you already have a 360...so how is it a violation? If you already have one, it doesn't affect you at all. If you're buying one it's an option, but not the only one.
So where's the "violation" come in?
WrenchNinja
Member
4GB? That's it?
gamergirly
Member
Nothing, because you already have a 360...so how is it a violation? If you already have one, it doesn't affect you at all. If you're buying one it's an option, but not the only one. So where's the "violation" come in?
So you don't care at all for the casual consumers who are going to fall for this? Dude really. You work for Microsoft?
OldJadedGamer
Banned
So you don't care at all for the casual consumers who are going to fall for this? Dude really. You work for Microsoft?
If I worried each day for the average persons gullibility I wouldn't get anything done in life.
bigtroyjon
Member
So you don't care at all for the casual consumers who are going to fall for this? Dude really. You work for Microsoft?
lol, what is there to fall for? That's like saying people "fall for" something when they buy a console on their credit card and make payments.
Funny how you quickly shifted the goalposts from "what's in it for us dedicated games?" to now being worried about the casuals.
bigdaddygamebot
Member
So you don't care at all for the casual consumers who are going to fall for this? Dude really. You work for Microsoft?
Hilarious.
Captain Tuttle
Member
lolSo you don't care at all for the casual consumers who are going to fall for this? Dude really. You work for Microsoft?
RoninChaos
Member
So you don't care at all for the casual consumers who are going to fall for this? Dude really. You work for Microsoft?
If they're stupid enough to fall for it, fuck em.
Speedymanic
Banned
So you don't care at all for the casual consumers who are going to fall for this? Dude really. You work for Microsoft?
Why should I care? Why do you care? Is this one of those 'first they came for the casual gamer', 'then they came for me', things?
outunderthestars
Banned
So you don't care at all for the casual consumers who are going to fall for this? Dude really. You work for Microsoft?
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.
bigdaddygamebot
Member
So.....you save your self 30 bucks yea nah not worth an agrement that sucks you dry I can see like 8-9 bucks a month thats really nice.
Maybe it sucks you dry but for a number of people, making payments such as this is far more appealing and involves far less buyer's remorse.
So you don't care at all for the casual consumers who are going to fall for this? Dude really. You work for Microsoft?
What are they falling for, exactly?
Do you have a cellphone?
faceless007
Member
Funny how you quickly shifted the goalposts from "what's in it for us dedicated games?" to now being worried about the casuals.
Actually I think you just identified the real motivation for the dislike: anything that makes a console more attractive to casuals is bad.
outunderthestars
Banned
Interesting move in concept; though there's not much savings...it just makes it easier to pay for those on the fence. Paying $99 + $15 a month, instead of paying $249 (or $299 depending on the store) for the console alone.
Especially if it includes XBL Gold.
How about they just ... you know ... lower the goddamn price?
xbox360 is going to be utterly obsolete in 2 years.
Is it possible that they've reached a bit of a plateau in cost reduction? Or perhaps they're still trying to clean up the trail of red ink from launch? Or maybe they're testing the waters for their next console launch ($700 console with high-end hardware, selling for $299-399 with a monthly fee of $15 on a 2 year contract)
ThatCrazyGuy
Member
Upon thinking about this, if this is true, why not do it with a bigger hard drive, so a person can purchase more digital stuff and store it while they are in contract?
I know the main draws would be the streaming services, but, idk.
I know the main draws would be the streaming services, but, idk.
Is it possible that they've reached a bit of a plateau in cost reduction? Or perhaps they're still trying to clean up the trail of red ink from launch? Or maybe they're testing the waters for their next console launch ($700 console with high-end hardware, selling for $299-399 with a monthly fee of $15 on a 2 year contract)
I could possibly believe that if we were only talking about the 4GB 360 which sells for $200.
But no way if we're talking about 4GB + Kinect for $300.
And you're getting locked into a 2 year term. So assuming you don't stop playing the system, you will have payed $460 at the end. The price is sure to drop sometime between now and then.
How about they just ... you know ... lower the goddamn price?
xbox360 is going to be utterly obsolete in 2 years.
Maybe it's because they haven't completely fallen off the map in terms of monthly sales. They will slash the price when they are not outselling the competition.
Vane_MagicCity
Banned
I think a PS3 price drop is coming and maybe this is Microsoft reacting to that. After all, the $199 4GB 360 is embarrassing compared to a $199 160GB PS3.
NemesisPrime
Banned
Wow. That has to be the stupidest Idea that I've ever heard. So I'm sure plenty of idiots will fall for it and it will be a success.
Phones do it... why not consoles?
outunderthestars
Banned
I think a PS3 price drop is coming and maybe this is Microsoft reacting to that. After all, the $199 4GB 360 is embarrassing compared to a $199 160GB PS3.
but the 360 still outsells the PS3 here.
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.
The person buying a 360 at the subsidized rate isn't exactly the kind of person to run out and buy a new system at launch.
Maybe it's because they haven't completely fallen off the map in terms of monthly sales. They will slash the price when they are not outselling the competition.
There are good reasons to cut the price regardless of what the competition is doing. But thanks for the flag waving.
outunderthestars
Banned
There are good reasons to cut the price regardless of what the competition is doing. But thanks for the flag waving.
Why reduce the price when sales are not dropping?
bigtroyjon
Member
There are good reasons to cut the price regardless of what the competition is doing. But thanks for the flag waving.
What would be a good reason to cut the price when your product is selling well?
evil solrac v3.0
Member
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.
What would be a good reason to cut the price when your product is selling well?
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.