Microsoft: $499 Xbox One Will "Over-Deliver" on Value

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Microsoft: $499 Xbox One Will "Over-Deliver" on Value

Xbox One

One of the biggest announcements to come out Microsoft's E3 press conference was the reveal that the Xbox One would be releasing in November at a launch price of $499. Considering some of the controversies already surrounding the console, some had their doubts that a price tag that high could find success among consumers. These doubts were only amplified by Sony's reveal that the PS4 would cost only $399. That said, Microsoft is still confident in its success and thinks gamers will be won over by the value offered by the Xbox One.

"[$499] is a lower number than some of the analysts had forecasted," said Don Mattrick, head of interactive entertainment for Microsoft. "We're over-delivering value against other choices I think consumers can get. Any modern product you look at these days and $499 isn't a ridiculous price point. We're delivering thousands of dollars of value to people so I think they're going to love it when they use it." According to Mattrick the Xbox One will provide a unique combination of "devices and services" that will include Xbox Live, Kinect and SmartGlass, among other features.

No one is denying that the Xbox One, even with its restrictions in tow, will be a machine with some considerable assets to offer consumers. The thing is, if said consumers, can't afford those assets it doesn't really matter how many thousands of dollars you're packing into your console. At the end of the day $499 is still a lot of money to ask, especially when consumers have comparable competitors selling for less.

Source: Polygon

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Uh-huh. Well, given that it's the customers who decide whether something is worth "thousands of dollars of value", I'm thinking you might get a little opposition to this idea.

Seriously, putting that price on it, declaring that it's actually worth so much more, like they're doing us a favor putting it $100 more than PS4 with more restrictions? How remarkably stupid they must think gamers.

Let's let the consumers decide the value of all these features. Is it just me or is Microsoft starting to sound like a used car salesman?

conmag9:
Uh-huh. Well, given that it's the customers who decide whether something is worth "thousands of dollars of value", I'm thinking you might get a little opposition to this idea.

Seriously, putting that price on it, declaring that it's actually worth so much more, like they're doing us a favor putting it $100 more than PS4 with more restrictions? How remarkably stupid they must think gamers.

But they are not selling to gamers, they are selling to publishers. Publishers don't need to be smart, or be run effectively. Think AAA games not making money when they sell millions of copies of a game.

If we wanted a Kinnect, we'd BUY a Kinnect.
And you don't need Smartglass to see this ISN'T.

StewShearer:
According to Mattrick the Xbox One will provide a unique combination of "devices and services" that will include Xbox Live*, Kinect and SmartGlass**, among other features***.

* Requires Xbox Live subscription, sold separately
** Requires tablet, sold separately
*** Requires US citizenship, sold separately

"[$499] is a lower number than some of the analysts had forecasted,"

+ 59.99 for one more controller if you want to play with a friend or sibling since the old ones wont work. But what are the chances people might want to buy an xbox for the multiplayer games?
+ 59.99 for any of the launch titles, if you want to play it once you bring it home, that is. No backwards compatibility here, either...
+ 54.99 for the year of xbox live you will inevitably need.
+ the cost of internet to make the machine work, which ranges from sixty-the high hundreds. Believe it or not, families without internet are not yet mythical creatures like dragons or unicorns.

So, let's see... About 700.00 (not including tax) if you want it to work as soon as you get it home. After tax in my home province it will be closer to about 800.00.

yes, the xbone delivers value....

to the companies.

all of these features are designed FOR COMPANIES

and the consumer is paying for them!

What a bunch of arrogant pricks lol.

Isn't that exactly what Sony said about the PS3's massive launch price? Sounds like Microsoft is setting-out to repeat the mistakes they watched Sony make with this last gen. Offer-up an over-priced system, claiming that it's the "best value" because it does a bunch of things that no one (or very few people) asked for.

Edit: Yup, and I found it. See my reply a few posts down.

Is it really value when they give you crap you don't want? Do I want a kinect camera that already makes the console 100 dollars more expensive? No. Do I want the home entertainment system that hooks up my cable into it? No. Do I want to pay more for what is potentially less power in terms of Ram speed where 3GB are dedicated to the OS? No. Do I want a gaming console... YES! I do! which one should I get? The PS4 looks nice. It doesn't come with any of that crap I dont' want, and it 100 bucks cheaper... Thanks Microsoft, your talk about value really has let me see which one is worth my money.

Since the price is lower than what some analysts predicted, it must mean there's a lot of value! Either Microsoft's PR people are cluelessly digging a deeper hole for themselves or they're frantically trying to dig up out of this mess to no avail. Either way, it's getting pretty painful to watch.

I wish this guy would tell us what they have to offer that is so much better than the PS4. He keeps on saying that the Xbone offers so much, except they offer nothing more than the PS4 except the digital game sharing, which I can do with the physical copies of my PS4 games. Besides that, what else does it offer that I won't get on a PS4? In fact, it's even slightly under powered in comparison to the PS4, so what services can they offer to make up(and then $100 more so) for these deficiencies? I honestly want to know. You're allegidly educating gamers as to why your console is so great, well, Don, learn me a thing or two.

Yup, I found it:

Sony said this exact same thing 4 years ago.

Different company, exact same justification for a price no one liked. Way to not learn from your competitor's mistakes, Microsoft.

Well, I can't deny it has a lot of features. So it's got that going for it. Unfortunately I just want to play a game, which the PS4 will allow me to do more efficiently and at a cheaper price.

I really don't get it, they're touting features few want as evidence by the 360's kinnect and not many seem to enjoy touch screen based controls, especially when you have to shell out extra.
And all their 'value' goes out the door when you can build a fairly beefy machine for a few bucks more and NOT have to spend the extra cost of XBL or worry about always online DRM and you have an insane amount of games for free and backwards compatibility that can't be beat.
On the console front, there's not really anything this thing offers more than either PS4 or WiiU.

Goofguy:
Since the price is lower than what some analysts predicted, it must mean there's a lot of value! Either Microsoft's PR people are cluelessly digging a deeper hole for themselves or they're frantically trying to dig up out of this mess to no avail. Either way, it's getting pretty painful to watch.

It could be they have dug so deep they have forgotten which way is up. The way things are going it seems quite likely.

True offline single player, no Kinect and less restrictive used games policy would in fact deliver on value.

I'm sorry Microsoft but I just don't see it.

Protip: Kinect doesn't count as value.

Comparing side by side, I literally see no reason to get an Xbox One over the PS4.

I wonder if that value they are talking about comes from the ability to watch TV on your TV?

Seriously this is a PR nightmare for Microsoft right now.

I guess when comparing to other high end devices like smart phones and tablets, $500 might not seem like so much. But it seems Microsoft forgot that they were supposed to make a fucking game console. A specialized device is not the same as as computer and no one wants to spend a lot money on a jack of all trades gaming machine because we already have android, Apple, and Windows for that crap. And nowadays we can get it in a portable tv-less form. What we want is an affordable gaming machine that's made for tv's and controllers because otherwise everyone would be pc gamers

Sony already tried this last time with their $500 console that "did everything" because it had a blue ray player. People only bought it after the price dropped. That's the only reason Microsoft has such a huge install base in America because the 360 was so much more affordable

Wow! Another absurd statement from Mattrick in the same day? Is this the result of the madness that comes from knowing that you are absolutely going to be fired from your dream job, but that they can't do it while you are still publicly visible in the press for fear of even further poisoning the new product rollout? So he just stays in the limelight getting wackier and wackier.

Keep on digging, Microsoft. Someday you'll find yourself out of that hole. Or you could shut up for a little while, let the dust settle, and move on from there. Whatever works for you.

Right, there are only three possible choices.

The third console curse is actually a thing, Sony have hired Mattrick and placed him in Microsoft's infrastructure or the NSA commissioned Microsoft to make a surveillance device and Microsoft are being the good guys and making it terrible so nobody buys the thing.

I'm honestly waiting for this next.
image

Yes! Just what I need... a system that is twice as expensive and half as powerful as my tablet. Might I add that it does less than my tablet too

Let's see... I don't watch TV, so I'd have to pay for television services alongside my internet, costing me more money. I'd have to get XBLA, costing me more money, I'd have to pay $60 for games again costing me more money as compared to the free or $5 I pay for games on my tablet. I'd have to deal with a camera that reports back to a company that I have refused to support for the past 15 years.....

I'm really seeing the thousands of dollars in value for a $500 price tag.

"Over value"... as long as you live in one of 21 countries... and can access all the things considered to be adding value...

"[$499] is a lower number than some of the analysts had forecasted," said Don Mattrick, head of interactive entertainment for Microsoft. "We're over-delivering value against other choices I think consumers can get. Any modern product you look at these days and $499 isn't a ridiculous price point. We're delivering thousands of dollars of value to people so I think they're going to love it when they use it."

I have no real words to describe this. So I'll let Bender do it for me.

For 500 bucks you can build a PC that could reasonably compete with the Xbone's hardware, and would be capable of doing most of the stuff MS brags about for free, without a need for an XBL subscription. And without a need to live in the United States or one of the 21 countries Microsoft has deemed worthy, either.

This guy really just needs to learn when to shut up.

this is indeed an eerie replication of Sony's attitude during the runup to the PS3. Apparently whatever possessed Kutaragi at the time has now moved on to Mattrick.

StewShearer:
"[$499] is a lower number than some of the analysts had forecasted," said Don Mattrick, head of interactive entertainment for Microsoft. "We're over-delivering value against other choices I think consumers can get. Any modern product you look at these days and $499 isn't a ridiculous price point. We're delivering thousands of dollars of value to people so I think they're going to love it when they use it." According to Mattrick the Xbox One will provide a unique combination of "devices and services" that will include Xbox Live, Kinect and SmartGlass, among other features.

So, in addition to failing to understand that internet availability isn't entirely under each customer's control, this guy also fails to understand how you convince people to buy your shit. He's told people not to buy the XBone if they don't have super internet, and now he's just telling people that, despite what they believe, $500 isn't a lot of money. Instead of telling them WHY your product is worth $500, you're just saying, "Awww, c'mon, it's not THAT much, look at these other guys!"

Can you make yourself appear any more out of touch with the average gamer?

Lolno. Most of the hardcore market already knows about Micro$oft's shit, and to the more casual gamers both of the consoles seem equal anyways, so they're going to go with the cheaper one. Really the only thing I can see saving the xBone is brand loyalty, and that tends to slam face first once people realize how shit the console actually is.

Yawn. Another day, another Microsoft statement. Insert the words "cloud", "value", "vibrant" and "sharing" at your leisure.

Give it a few more weeks and he'll be saying "The Xbone is the best console because it's powered by leprechauns."

Shamanic Rhythm:
Yawn. Another day, another Microsoft statement. Insert the words "cloud", "value", "vibrant" and "sharing" at your leisure.

Give it a few more weeks and he'll be saying "The Xbone is the best console because it's powered by leprechauns."

Now that would be a lot of Blarney.

"We're over-delivering value against other choices I think consumers can get. Any modern product you look at these days and $499 isn't a ridiculous price point*. We're delivering thousands of dollars of value** to people so I think they're going to love it when they use it." According to Mattrick the Xbox One will provide a unique combination of "devices and services" that will include Xbox Live***, Kinect and SmartGlass****, among other features*****.

* When all your competition is undercutting your price, yes it is.
** You mean the games we have to buy at $60?
*** Requires monthly subscription
**** Requires a tablet
***** Like what? The DRM? Those are called limitations not "features" MS.

Captcha: What. ever. Sums up my feelings perfectly.

sure their hardware might be up-to-date with the competitors, but jeewhiz are they setting themselves up behind an eightball when it comes to consumers. All the online garbage, having to pay-to-play for so many features we already get for free through the current PS3's we might own.

Now, being priced at $100 more, I guess they're banking on un-witting parents buying these machines for their kids, because I can't really see any reason an 18y.o.+ gamer would support this.

conmag9:
Uh-huh. Well, given that it's the customers who decide whether something is worth "thousands of dollars of value", I'm thinking you might get a little opposition to this idea.

Seriously, putting that price on it, declaring that it's actually worth so much more, like they're doing us a favor putting it $100 more than PS4 with more restrictions? How remarkably stupid they must think gamers.

consider that it's pretty much marketing 101, this has no greater disdain for the intelligence of the consumer than is demonstrated by the rest of the market.

And quite frankly, none more than is merited. If you think this is a sign of stupidity, consumers really are that stupid.

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