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US: $99 Xbox 360 + Kinect bundle coming with two-year subscription ($15 a month)
- Thread starter VOOK
- Start date
The other reason I suspect it'd be BOTH to make a more powerful systems and to draw more money out of consumers is that,w ell, coming in with the most impressive system IS their goal I imagine to be dominant and make money, and cellphones established it's possible to sell at a low entry price only to get the rest of the money out of them over the following years anyway. Microsoft, desiring to be cutthroat, would probably go to that extreme to "compromise" between awesome power and reasonable cost. But unlike with phones, I fear it's a race forward with technology that could potentially cause or at least hasten a collapse.
This is actually a pretty genius move.
Should offer upgrades when the plan is over for a reduced price into next-gen. Also expand and offer different payment plans, include a 5 year one in there. Then they can roll ot a decently powered console every five years.
Still you have to keep the legacy model of offering the full console at full price.
Should offer upgrades when the plan is over for a reduced price into next-gen. Also expand and offer different payment plans, include a 5 year one in there. Then they can roll ot a decently powered console every five years.
Still you have to keep the legacy model of offering the full console at full price.
phffft ahhhahaa. My text messages are important! lol and sad face at our society.
akilshohen
Member
If netflix is included, this is a great deal.
UberTag
Member
No real reason NOT to offer a legacy model. Customers love choice.
Plus, what better way is there to convince customers of how much cheaper the "reduced service plan model" is than to have a non-service plan model out there to compare against.
I doubt this will be the case with this pricing model being offered through MS Store next week.
But I do suspect this will be something we see down the line seeing how Netflix's CEO is on Microsoft's board of directors.
(He's also on Facebook's board of directors, incidentally.)
I was about to post that this was potentially a very dicey move as they'd be tying up a lot of money up front in subsidies that they'd only get back gradually. But the mobile communications point was very apt.
Only downside I can see is, what if people stop paying before the contract is up (i.e. cancel your credit card)? Mobile companies would simply shut off your service, as that's essentially what you're paying for month to month. And your phone would be a brick at that point, because it's carrier locked.
Microsoft could do the same for Xbox Live, but people would still be able to play the consoles offline. Assuming they couldn't remotely disable the unit. That would probably be dicey from a legal perspective though.
Seems reasonable for people who want Gold services but can't afford the up front costs. Like most things you pay less buying it all upfront. Really though the $40 difference over two years doesn't seem like a big deal. I like that the option is (well allegedly will soon be) out there.
Shogmaster
Member
As with everything videogames, Sega had the idea first:
Agent X
Member
No, they would be buying an item worth $300 today. People shouldn't be paying any fee to play games online. Whether they do so under the guise of a "contract" or not is meaningless...it's a scam either way.
If they could get away with it, then that's actually a good idea (from the consumer perspective). Someone who doesn't feel like falling into Microsoft's ripoff trap could simply buy the console for $99 outright and just never hook it up online.
That sounds too good to be true, though. Either they will slap you with an "early termination" fee, or they'll find some Divx-like method of requiring the console to remain connected to the Internet to be functional.
lastplayed
Member
Just like phones.
TVs will be next, then kitchen appliances, cars... the future is subscription based services muhahaha.
out0v0rder
Member
This will sell like gangbusters. Gaming is ded.
kitchenmotors
Banned
Not sure how this is such a great deal for consumers, since you end up paying a lot more for the console, around $100 more. Also, it's only available at Microsoft Stores. How many are there? Less than 20?
I suppose there's money to be made from stupid people.
I suppose there's money to be made from stupid people.
Shogmaster
Member
So, anyone who uses credit card for purchases is stupid too, no? That's like 99% of this country.
This deal ain't for you. It's for those who want 360 but don't have disposable income to cover the cost at once. For them, it's a perfectly fine deal.
kitchenmotors
Banned
I see where you can make this argument, but this isn't a credit card. If you don't have the disposable income to get an Xbox, you probably shouldn't get into a 2 year contract to get one. A smart person, who doesn't have a whole lot of disposable income, would get a used one. Like I said, stupid people.
bigtroyjon
Member
So only stupid people sign up for cell phone contracts?
kitchenmotors
Banned
This is console hardware, not service. You can't compared the two in this situation, except for signing a 2 year contract. When you sign up for a cell phone contract, you're paying for a service and to subsidize some of the cost of the phone. You can get an Xbox out of contract and still get the same product, just cheaper, so this is really just leasing.
Perhaps something else will be thrown in, like Netflix or some other service, to make it seem more of a value.
Shogmaster
Member
What about all the iPhone owners who signed up for 2 year contract with $200 down. Are they also stupid? Out of pocket cost for new iPhone would be what, $600~700? You shouldn't buy an iPhone if you don't have spare $600~700 laying around?
phosphor112
Banned
Fucking disgusting. Lmao.
Shogmaster
Member
Agent X
Member
Does this offer also include full broadband Internet service?
Shogmaster
Member
No smart ass.
Service is a service. Either you want it or you don't. A lot of people do want XBox Live service.
kitchenmotors
Banned
Does that iPhone work without service? The monthly service price is still the same, in a contract or out of contract. An Xbox doesn't require service to run. Live doesn't require you to buy a contract. You still access to some of Live without paying anything and if you choose to pay for it, it's fairly cheap.
CountAntonius
Member
Smart but I better always have the option to find gold for a year on the cheap. If this fee is mandatory next gen fuck them.
Shogmaster
Member
You can use iPhone without cellular service. It's called iPod Touch.
faceless007
Member
When you sign up for this Xbox, you're paying for Xbox Live Gold service and to subsidize some of the cost of the Xbox.
You can get a cell phone out of contract and still get the same product, just cheaper (assuming fewer months of service). How is this a lease? I must have missed something, I don't see where you have to give the Xbox back after 2 years are up.
bigtroyjon
Member
And you can use an iphone on a cheaper plan than the one that comes with the subsidized hardware.
It's exactly the same thing, don't hurt yourself trying to turn this into something it's not.
kitchenmotors
Banned
But Xbox Live isn't required for an Xbox to work. It's not hardware dependent on service. A cell phone requires service to work. I don't need to purchase Live to get the most out of my Xbox or to even make it work. And if I choose to use Live, I can get a month fairly cheap.
bigtroyjon
Member
And you don't need the expensive plan that comes with subsidized hardware to get the most out of an iphone.
It's the exact same thing, you are getting hardware subsidized in return for signing up for a 2 year plan.
The problem is what I stated before, they could use this as an excuse to go completely crazy in a way that's actually unhealthy for the game industry. If this could STAY as, say, buy a $400 console or get it $200 with a contract, and otherwise be no different from prior launches, then I actually wouldn't have that big of a problem with it, just an alternative for people who prefer it that way.
kitchenmotors
Banned
This is how I see it, it's not a deal and it's not a great idea. Hopefully this test doesn't translate to extremely expensive hardware next gen with contracts.
Vane_MagicCity
Banned
Not the 4GB model.
Infamous Chris
Banned
Some salty ass tears up in hea. :lol
I agree though, smart move by MS.
I agree though, smart move by MS.
Agent X
Member
Why should we be paying "contracts" on game consoles to begin with?
Slippery slope, folks.
AdventureRacing
Member
Since when are you being forced to? It's just another option.
Infamous Chris
Banned
Uh, you don't have to pay anything. It's just an option.
Vane_MagicCity
Banned
faceless007
Member
I'm actually kind of shocked no one's thought of it before. Cell phones have the problem of being very expensive technological goods that telecoms want to have as broad market penetration as possible. So they lower the barrier to entry and heavily discount them in exchange for fixed revenue over time for service. Phones are perceived as cheap and more people buy them, but get locked into your service for 2 years. We may not like it, but that model is obviously a large part of the growth of cell phones in the last decade.
Video game consoles are expensive technological goods but makers want to get them into as many homes as possible. Hmm...
Video game consoles are expensive technological goods but makers want to get them into as many homes as possible. Hmm...
Do you have a cell phone, and did you pay a subsidized price for that phone by agreeing to a contract?
UberTag
Member
That's your misplaced perception.
People ARE paying to play games online with Xbox LIVE Gold.
They're paying publishers even more to play with Online & Season Passes.
And Microsoft's model is driving incredible revenue whereas Sony as a corporation lost 260 billion yen last year.
If you are offering customers a service and they choose to pay for it, then that's just smart business. There's nothing scammy about it if you're delivering them exactly what you're advertising.
You need to reassess your definition of how these devices "work". They have multiple functions.
An iPhone works perfectly fine on Wi-Fi in terms of apps and games if you don't have a working wireless contract.
He is right though, if it should get to the point where you can't buy the console out of a contract. Or if they at least make it a pain in the ass, and very likely would make it prohibitively expensive stand alone depending on what they do with it. Stuff like cellphones I want more for a service, and things like fridges or cars are just so damn expensive yet necessary that, yeah, paying over time really does make sense. I outlined a possibility I'd be comfortable with, but I doubt it'd end at just that.
Though, I think some stores HAVE offered similar plans in the past? This may come off as worse simply because Microsoft themselves are doing it, at least through their stores.
No, I'd be very disappointed with Nintendo too, but how Nintendo does business seems to be fundamentally incompatible with those, or at least would come off as excessive. They never really aim for absolute cutting edge hardware in the way Sony and Microsoft do, especially this generation, whereas Sony and Microsoft both like to push those limits. It's not a big step to think Microsoft might want to go with contracts FOR some grossly overpowered console in the future, and I wouldn't be surprised if Sony seriously considered it too.
ToLateToLove
Member
Why are you all comparing with cell phone contracts when it's not the same thing. This is like you buy an Xbox with Kinect and 2ys of Live and instead of paying for it on the spot you're on a 2 year payment plan. Something you can already do with store credit/credit cards and whatever. :S
Just Microsoft trying to make it sound special with "subscription".
Just Microsoft trying to make it sound special with "subscription".
why? The majority of Gaf does want an uber powerful next generation. This is probably the only way we can see new consoles at the prices we are used to (250 range).
although, 15 dollars is too much. It needs to come down to 9dollars a month.
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