UK Phone Carrier O2 Offering Xbox One and PS4 Contract Plans

UK Phone Carrier O2 Offering Xbox One and PS4 Contract Plans

Is this business model the future for console hardware?

European phone carrier O2 has started selling Xbox One and PS4s using a contract model similar to those used when purchasing smartphones in the UK. The Xbox One plan, which is available today, will get you an Xbox One for 99.99, with a two-year contract at 52 per month. In the US, that would be about $164 down, and $85 per month. All told, customers will end up paying roughly 1348 ($2205 USD) when the contract has been fulfilled.

Unlike the phone plans we might be used to the console, the console contract comes bundled with games and a Windows Phone, which sort of explains the high price tag. In addition to the console, the contract comes with FIFA 14, a 12-month Xbox Live Gold membership and a Nokia Lumia 1020. O2 sells the Lumia 1020 for 620.00 without a contract.

O2 unveiled a similar bundle-plan for the PS4 last week. Unlike the Xbox One, the PS4 has two payment plans: Customers can either pay 89.99 upfront and 52.99 per month, or put down 129.99 and pay 46.99 per month. Both plans includes a PS4, a Sony Experia Z1 smartphone, Killzone: Shadow Fall and 12-month subscription to PlayStation Plus.

Microsoft has experimented with selling consoles on contract in the US in 2012, offering a Xbox 360 console with Xbox Live Gold for $99 down and $15 per month for two years. At the time, the offer prompted a surge of speculation and rumor-mongering over whether the console we now know as Xbox One would follow that model.

Source; MCV UK

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I suspect it's more a matter of offering the consoles alongside the phone contract rather than specifically be about the consoles.

Well it's nice that new payment options coming into play, but this one is beyond retarded... you are basically paying double for the entire package and the entry price is not the least bit cheap.

Mr.K.:
Well it's nice that new payment options coming into play, but this one is beyond retarded... you are basically paying double for the entire package and the entry price is not the least bit cheap.

What? No. Maths does not work that way.

Xbone - 430
Lumia 1020 - 620
Fifa - 40
Phone contract - ~20 a month so 240

= 1330

Not a terrible deal. And I forgot to include the price of XBL.

This isn't anything new in the UK our phone contracts come with anything from phone accessories to laptops, tvs, consoles. May considering switching to o2 next year though, considering I can't really justify 400 for a new console when I have a gaming pc.

number2301:

Mr.K.:
Well it's nice that new payment options coming into play, but this one is beyond retarded... you are basically paying double for the entire package and the entry price is not the least bit cheap.

What? No. Maths does not work that way.

Xbone - 430
Lumia 1020 - 620
Fifa - 40
Phone contract - ~20 a month so 240

= 1330

Not a terrible deal. And I forgot to include the price of XBL.

Indeed, not a horrible deal if you wanted those other things. Although, given that the Lumia appears to cost more than the Xbox, this appears to be more of a phone contract with xbox stuff thrown in, rather than an xbox contract that includes a phone.

My little brother got his first 360 back in the day as a gift (plus a TV, non flatscreen) plus a phone on 2 year contract for 0 euro's. The price per month was quite low as well!!!

This sounds like a massive rip off.

Jadak:
Although, given that the Lumia appears to cost more than the Xbox, this appears to be more of a phone contract with xbox stuff thrown in, rather than an xbox contract that includes a phone.

thats exactly what it is. a Console is merely a addition here. Here you got internet companies offering tablets as additions to contracts (basically sign 3 year contract and get a 300 dollar worth tablet with no extra costs). which is basically same deal type.

Nobody's corrected you for spelling Xperia with a capital E? Am I the only one here who actually uses one?

 

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