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Pachter: Xbox 720 will launch at $99.99; have cable TV subscription

bengraven

Member
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herod

Member
Its never going to be the same again, dedicated gaming consoles and devices are a thing of the past. I respect your opinion as a consumer, its very valid. However times are changing and changing fast.. multi purpose devices are taking center stage and in the battle for the living room the tactics have to adapt fast in order to be competitive.

You (me, us, GAF) are the vocal minority, the quickly shrinking minority who's opinions and tastes are finally starting to loose its grip. PC gamers felt the sting a few years ago with shift mostly to the console crowd.Now console gamers will feel that same sting as the industry shifts yet again, this time to a social, multi service, cloud based system that can service every kind of consumer out there. Games, applications, media consumption .. you name it, the next Xbox is going to hand deliver all of it on demand, a la cart. A subsidized entry price (ie $99 w/contract) has proven to be beyond successful with the cell phone industry and MS is going to run with it with their next gen. Consumers will probably fall right in line, this pricing model will feel right at home and not confusing at all.

MS wants an Xbox in every household and no longer under the TV of the 18-35 year old male. You are a consumer, no longer the consumer. It will never be the same again, we are old men shaking our fists at the clouds. We are being bred out, drowned out by a younger generation of gamers/consumers who are raised with services like these. They come to expect their devices to do more. With every year more and more of them enter the market and slowly but surely us old timers, us enthusiasts will be drowned out completely and left only to remember the old days of gaming.

Nothing you or anyone does will change this.
mainstream consumers will ask why they have to pay so much for a noisy box just to watch TV on.
 
I think the odds of the next XBOX being $100 and having a subscription payment plan for 2-3 years is going to be an option. A very successful option at that.

I dont think so at all. In this economy, I don't think many people want to pay another subscription plan for a video game system.
 
I dont think so at all. In this economy, I don't think many people want to pay another subscription plan for a video game system.

And in this economy, people don't want to pay a premium price for tech. I'd jump, and I know a lot of others will, on a subscription plan. Maybe not the "GAF" community, but the casuals.
 
Couldn't they just sell the console at a regular price outside the US ?

If it's expensive enough to warrant a subscription in the U.S, I imagine that it'll be too expensive without that subscription outside of the U.S.

That's all speculation though, and 99 launch price + subscription might not mean that the price without subscription will be very high.
 
Do people honestly think this will be the ONLY way you will be able to get the next box?

You know that Microsoft is going to hit every possible way to get as many consoles out there.

Whether it be on a payment plan like they currently have, via cable tv subscriptions, or just straight up walking into a store and buying one for 400-500 bucks.
 
NO ONE is going to pay a subscription for 5-7 years to use the SAME device

Seriously, the only reason TV and Cell phones sucription model work is because of the free upgrades on devices.

Unless MS plans on upgrading hardware/services every 2 years, this model is going to fail.
 

herod

Member
some mainstream consumers will ask why they would pay for a cable box they already have when they just want to play madden.
Yep. I don't really see what value this feature has to anyone except Microsoft themselves. I assume they're offering a significant discount on pay tv here.
 

JimiNutz

Banned
I'm sure that MS would love to lock us all in on a $50 per month contract but is this going to work for gaming?

I have enough direct debits every month as it is - phone, car, gym, cable etc. There's no way I'm going to add an Xbox subscription as well unless its maximum $15 per month (depending on what it gets me for my money).

The subscription model seems like it will alienate too many potential customers.
Maybe it'll be more viable in 10 years.
 
Pachter really has no idea what he is saying does he.
How do i get this guys job, All he does he throw stupidity out onto the internet followed by tiny tiny tiny statements of common sense.
 

99%

Member
Netflix is already available in parts of Europe, sorry if its not there for you yet but it will get there.
 

Bsigg12

Member
I think with the option of picking up a 360 right now at $99 with the contract, I think it's only logical that Microsoft continues the trend with the next Xbox.

I mean give consumers 3 options of paying for the Xbox 720:
1) $99.99 USD with 3 year contract and cable tv plan
2) $199.99 USD with 2 year contract no cable service
3) $399.99 USD outright with no Xbox Live Gold/Platinum service included like the other 2.

Depending on how expensive the cable service would be, only having to pay $100 up front for the next generation of a console at launch looks really enticing.
 

99%

Member
Isn't there only a barebone version available in UK and Ireland ? Wouldn't there be quite some issues e.g. with German (monopoly) law ?

I doubt the real thing will be available in Europe anytime soon (probably not even within the next 5 years).

Its getting better here, its nothing compared to the US but its a start.

And yeah I bet legislation is the major problem for Netflix in the EU.
 
Pachter is not the problem.

The people who are so clueless about their own investments, and the industry they have a financial stake in improving, that regard his bullshit as legitimate analysis? That's a problem.

It'd be one thing if he was simply on a magazine payroll, writing editorials. That'd be professional trolling, which is fine. It's what you want someone writing editorials to do, so long as they put in the time and effort to provide reasoning that could withstand some semblance of challenge.

But this guy is hired, and then paid, to provide market analysis to people who are responsible for helping fund projects.

I mean, Jim Cramer is a clown, but can you imagine if he offered financial advice on CNBC at a level as utterly batshit as Pachter's advice regarding the gaming industry? He'd probably be imprisoned.
 

SmokedMeat

Gamer™
Little Jimmy 720 owner
Little Mary: Mooooooom! Jimmy won't let me watch Jersey Shore!
Little Jimmy: But mom, I was here first and was playing Halo with my clan!
Mom: Jimmy, get off the damn Xbox so your sister can watch TV!
Little Jimmy: But mom! It's my Xbox!
Mom: And it's also our cable box Jimmy so get off! I won't tell you again!!
Little Jimmy: But MOM, my clan!!!
Mom: *SMACK!!*


Little Jimmy Wii U owner
Little Mary: Moooooom! Jimmy won't let me watch Jersey Shore!
Little Jimmy: It's ok sis, I can play on my U-pad while you watch those retards.
 

KageMaru

Member
This is why I love GAF, so willing to jump to conclusions and extremes:

If it's expensive enough to warrant a subscription in the U.S, I imagine that it'll be too expensive without that subscription outside of the U.S.

That's all speculation though, and 99 launch price + subscription might not mean that the price without subscription will be very high.

Why assume a subscription model is in place because the price is too high? This can be an option along with paying up front, just like they are doing now with the 360.

I don't consider $400-$500 too high for a next Gen console and I don't see it costing more than that.

NO ONE is going to pay a subscription for 5-7 years to use the SAME device

Seriously, the only reason TV and Cell phones sucription model work is because of the free upgrades on devices.

Unless MS plans on upgrading hardware/services every 2 years, this model is going to fail.

What makes you think this contract would be for 5-7 years?

Also people have been paying for Live for almost 10 years btw.

You can count me out then MS. I don't even have cable TV now. Comcast is the biggest rip off ever. All I need is netflix, internet and movies.

Is there a reason you couldn't get Netflix, internet and movies? The cable won't be forced.
 
Little Jimmy 720 owner
Little Mary: Mooooooom! Jimmy won't let me watch Jersey Shore!
Little Jimmy: But mom, I was here first and was playing Halo with my clan!
Mom: Jimmy, get off the damn Xbox so your sister can watch TV!
Little Jimmy: But mom! It's my Xbox!
Mom: And it's also our cable box Jimmy so get off! I won't tell you again!!
Little Jimmy: But MOM, my clan!!!
Mom: *SMACK!!*


Little Jimmy Wii U owner
Little Mary: Moooooom! Jimmy won't let me watch Jersey Shore!
Little Jimmy: It's ok sis, I can play on my U-pad while you watch those retards.

according to the patent file thread, you can stream to other rooms.

so i don't think there would be a problem, if it's all true of course.
 

Puckmarin

Banned
Partnering with a cable company makes no sense, unless MS partners with several different cable companies to cover the whole US.

What about rural areas where cable isn't available? It makes no sense.

What does make sense is a subscription based service that lowers the initial price of the console, just like a cell phone. Consumers can buy the console at full price (whatever that is) or they can pay a reduced cost and then a monthly fee.

You know what I'd love to see?

$49.99 a month for the following:
Xbox Live Gold
Netflix Streaming
Hulu Plus
whatever other "pay to stream" services MS can put on it's next console.

Two year agreement to pay that $49.99 a month gets you a console for $100 - $200, just like a cell phone. People who don't want to sign the contract can pay full price for the console.
 

Epcott

Member
I laughed at the $99.99 price tag.

I laughed out loud at the cable TV subscription.

If it launched that low, wouldn't it cannibalize the already $99.99 Xbox w/subscription deal? I can see them launching the 720 at a reduced price with 2 year Live subscription... but not with cable TV and not at $99.99. That's just crazy, and it would be a mess for them negotiating with Cox, Comcast, Verizon, the countless other providers and their respective areas nationwide, and the international providers, and... you know what? It's just a dumb idea.
 

DCDW

Member
Where does MS make the money with a Cable provider partnership on a brand new console? I can understand the current 360 partnership as the parts have had time to come down in price. But $100 and a cable subscription? That Subscription deal better be heavily favoured in MS's favour or they'll be losing a metric shit ton on every console sold. Now I know it's been their thing selling at a loss, but $100 + what $20-30 (this is quite a reach) a month from the partnership?

If MS and the cable provider split income from online transactions then I can see this being ok and Cable providers are a bit hesitant to make a strong transition to online content, the Xbox brand could provide a level of control via ads with trackable data and a proven infrastructure. However again that's long term and I can't see that deal not bleeding a record amount of money lost on each console sold.
 
K

kittens

Unconfirmed Member
If cable TV was bundle in with XBL and not sold as a separate subscription I would never resub again.
 

GDGF

Soothsayer
I'd pay 99 bucks for a 720 or whatever if the only subscription I had to pay was LIVE. Not interested in this. I already pay enough for cable TV + internet.

It's looking more and more likely that I'll be doing WiiU/PC upgrade instead of Wii U/720.
 

Marco1

Member
They will have a subscription plan and will also be selling it without. The sub plans will also differ in price to what is provided.
But the problem I have is everything is half-assed, my 360 did not replace my skyHD box and neither did it become my DVD player. The youtube app is awful and if kinect is the future then I won't be there.
I can understand what MS is trying and why, they want me to buy windows phone, windows tablet and nextbox and I am sure that all three will work in perfect harmony but I don't wnat to feel that I am losing a feature because I don't own all three.
I want a kick-ass gaming console, nothing else and I am now hoping that this is were Sony will step in.
 

Matt

Member
A lot of people seem to be misunderstanding this. You wouldn't be paying for this on top of your cable tv subscription, it would be instead of, and the XBox would replace your cable box.

Not that I necessarily think it's happening....
 

mrklaw

MrArseFace
I think they're more likely to subsidize the console price with Live subscriptions, which will include a large bundle of streaming services (as it does now).

$199 console, with say, three to four year commitment for Live.

If they really want to get aggressive, let buyers pick how many years of Live they commit to in order to further subsidize the purchase price (say, 1-5 years of Live for different price points on a sliding scale).

But the live subscription doesn't 'give' you a large bundle of streaming services. It just gives you access to services you are already a member of, whether free or paid. Most Xbox services are horizontal and on many other competing platforms. An Internet streaming offer isn't unique at all.
 
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