Activision: Xbox One has to "convince" gamers that it's worth $499

"If you do a focus group of a gazillion people and you show them two prices for two competitive products, 100 percent always prefer the lower price," says Activision CEO.

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Activision has entered the discussion about Microsoft's decision to price the Xbox One at $499, with CEO Eric Hirshberg saying that platform holder will need to "convince" gamers that the console is worth the money.

"It's up to [Microsoft] to win the value argument," said Hirshberg in an interview with GamesIndustry International. "If you do a focus group of a gazillion people and you show them two prices for two competitive products, 100 percent always prefer the lower price."

"I think from a first impression standpoint the win goes to Sony, at least as it relates to pricing. Microsoft is going to have to win the hearts and minds and convince people that the higher price point is worth it, and that it provides really meaningful capabilities that will be meaningful to consumers. And it's a long game, so I am sure that's what they intend on trying to do."

Sony has priced the PlayStation 4 at $399, but Microsoft's higher price also includes its latest motion-sensing Kinect peripheral. Does Hirshberg think the Kinect 2.0 will make a long-term difference to the Xbox One's chances? "I think it's the same answer; I feel they have to show why that's a good thing and why it's worth the premium and deserves inclusion and why it's something that gamers are going to come to really value and appreciate."

"It's going to be a fun battle to watch, but I think they definitely have to win hearts and minds in terms of the value of it," concluded Hirshberg.

Activision has an timed exclusivity deal with Microsoft for Call of Duty DLC, and the third-party publisher also took to the stage during Microsoft's Xbox One reveal event in May to show off Call of Duty: Ghosts. The publisher has also signed an exclusivity deal with Sony for content on Bungie's upcoming shooter Destiny.

Discussion

1706 comments
SpikeSpeagal
SpikeSpeagal

Well I can sum the question this article ask's in one sentence:

Fact: It's not worth $499 dollars.

isisblack
isisblack

honestly its a hard call to me to convince me to buy a xbone because of the stipulations they have with owning the system.

ma_hurt
ma_hurt

My problem with the Xbox 1 is that I do not want to help subsidize their Kinect.  I do not want to use the Kinect, so why do I want to pay $100 more so I can be forced to use a mandatory Kinect ??

ApocaLeepse
ApocaLeepse

This is actually pretty funny coming from Activision, considering every Call of Duty game is usually higher in price than any other game on day of release.

djpetitte
djpetitte

I have a feeling the xbox 180 is going to be one of the biggest flops in video game history

CaptWaffle
CaptWaffle

So strange..... Microsoft makes some horrible, "WHAT WERE YOU THINKING!?!?" decisions... but with a simple apology many, many people came running back to complete quasi-Worship of not only the XBone, but also Microsoft.  What you might wanna think about is: If they made such terrible decisions before it was due to their decision making.  It's not like their decision making has improved, they just saw that things were snowballing more quickly then they could put a handle on it.  What's to say they won't in the future have another colossal "lapse in judgement" and do something else idiotic beyond belief.  Look, I've had a 360 for a LOOOOONG time (happily I might add..... it broke but I got it fixed locally on the cheap and it's been fine since).... but I simply cannot trust Microsoft anymore.  It kinda makes me think that a lot of the people that were in the "BOO!  MICROSOFT SUCKS!" crowd recently were just guilty of Group-think... or a Mob-Mentality or something similar.... not a genuine "I have assessed all relevant issues and have decided not to trust these people anymore.  Personally, if someone shows me they have terrible decision-making skills (or at least have reached decisions that are a polar opposite or are mutually exclusive to my own), then it's going to take a while for them to get back in my good graces and earn my trust back.  If Microsoft ends up making a lot of smart, common-sense decisions that I'm in line with then I'll end up trusting them..... but it'll take a lot more than an apology that only came because they saw that there was an angry mob at their doorstep with torches and pitchforks.

(interesting note:  When i first saw the Halo 5 info... that's when people suddenly started saying "Well, Microsoft isn't really so bad.....".  I don't think that's a coincidence.)

starjay009
starjay009

No offence to Americans or XBOX fans but I won't be getting the XBONE simply because I am not American. I don't like the price, I hate the Kinect, I hate them for promoting American pro sports, American TV shows etc and I hate Microsoft as a company. I will be getting the PS4 which has better hardware, is a lot cheaper, has better exclusives which eventually will all be released within the first quarter of the PS4's launch. The XBOX fans will argue that the XBONE has better launch day titles, but who cares ? We all know it will all end that same day. Out of those exclusives only 2 are worthy of mention - Titan Fall, and Forza 5. The rest are garbage. The PS4 will have top games in the new year. It's better to wait for stability rather than immediacy. This is my humble opinion and I am sure I am not alone here. 

DemoKnight10656
DemoKnight10656

people need to stop bitching about price its a game console do u expect it to be cheap I never did I bet you all did the same thing with the xbox360 and the ps3 grow up. but activison youd better not screw this up with destiny cause you have screwed up a lot of games and if you screw this up you don't even want to know

sephsplace
sephsplace

well i bought the 360 cause it was cheaper....

Upat3am
Upat3am

Just compare the two then decide if it's worth it. Really what's a hundred dollar's more?

Grenadeh
Grenadeh

That's a false assumption. A lot of people assume higher price equals higher quality. A blind price comparison is not going to net you 100% for the lower price. Intelligent people will want to know why the higher price is what it is.

ShakyMonkey
ShakyMonkey

Everyone is wailing on the XOne because it costs more. IN MY EYES the XOne has better exclusive games, therefore it will be my chosen console. Why would anyone get a console that doesn't have one's desired games? I get that PS4 is cheaper, but FOR ME XOne exclusives look better. FOR ME. IN MY OPINION.

poromenos
poromenos

MS has to remove kinect and make a cheaper model then ps4.

gorantse
gorantse

i love them both, but xbox one mychoice cause i enjoy halo series and people should buy what they enjoy to play. especially it is worth paying attention to what you want, rather than a price point, but both are great products and price can play difference to many people.

Atrox80
Atrox80

Convince? They already have all the M$ sheeple in their pocket...

XCyberForceX
XCyberForceX

M$ got money to burn, drop the price to $450.  I think that'll make the price difference more palatable. 

GONtheSKYLORD
GONtheSKYLORD

I'd listen to Activision on this one. They have been convincing people to buy the same game every year for this entire gen, plus all the dlcs. They are the masters at this.

StephenSays
StephenSays

This is odd, activision is a basically saying they don't know how to innovate.  Here is a thought when will I be able to play cod without the controller on X1.  Why don't you guys try supporting kinnect besides have me yell at my TV. 

Until a company makes a real Kinect game where you are the controller, then x1 will look like its worth the money.

Disciple_Gamer
Disciple_Gamer

Xbox One will not have a problem with the $499 pricing considering the PS3 was more expensive when it debuted and it did just fine.  Produce stellar games, and the gamers will come.

erix43
erix43

Micro$oft is pulling a $ony PS3 . . . Hehe 

TirOrah
TirOrah

This doesn't take exclusives and exclusive services into account, though. But I agree that Microsoft needs to communicate about the advantages the X1 will have over its competitor, they've been really slacking off in that area.

RighteousWoman
RighteousWoman

@CaptWaffle Wake up CattWaffle, they are ALL bad and yes, that includes your beloved Sony. They are mega corporations and only care about one thing and one thing only, MAKING MONEY. They will do whatever they can to increase profits. Personally, I love how last gen you had 100,000+ Sony fanboys screaming bloody murder over Xbox Live Gold being a pay service. I cant even tell you how many times I heard PS3 supporters stating they would NEVER pay to play online. Yet Sony suddenly makes the Playstation online service a paying service and all of the sudden those same gamers are now ok with it. Now those same gamers are shooting out ridiculous excuses on why its now ok to charge for such a service. "oh, they give you free games so its definitely worth it" Blah Blah Blah Blah Blah. You want to bash on MS supporters running back to MS...well, I can easily do the same thing with Sony supporters. Both companies are 100% equal and anyone suggesting otherwise is so blinded by their fanboyism that they can no longer look at this topic objectively. So please, save your preaching. When you bash one, you bash all of them. End of story.

dman123_1
dman123_1

@CaptWaffle My thing is, my trust wasn't big on any company to begin with. MS and Sony have had their fair share of issues beyond gaming (Sony's crappy stereo products, MS Vista updates basically made one of my computers useless). I see what I want, if I like it, I'll get it, plain and simple. IF we are talking politics here, you might as well just stop gaming then because I can get so deep into that and what both companies support with their lobbying.

Grenadeh
Grenadeh

@CaptWaffle People like you and ship jumpers to PS4 don't know microsoft well enough to make a decision. Your only exposure to them is through Xbox and that's the smallest, most insignificant thing they do.

CraZed__
CraZed__

@CaptWaffle I'm getting a PS4 let's get that out of the way. Oh and I did not read your entire statement as it was a very long wall of words. But I think I got the gist of it:

It aint that serious bud. MS reversed its policies. Whether that was from them reading every single negative comment on the interwebs or because their preorder numbers sucked, whatever it was they changed it. It isn't about them being evil and wanting to control you and I or spy on us with a crappy camera peripheral.

Its about consumers getting their way and they got it. That deserves rewarding. If the market does not respond to their reversal why would they ever listen to the consumers again in the future? It has to pay off for them for it to have really been a successful consumer campaign.

CaptWaffle
CaptWaffle

@sephsplace  

Me, too.  And that was the only reason.  I owned both an Xbox and PS2 and would have done the same with the 360/PS3 if the prices were lower.  As it was the 360 was a LOT cheaper; thus I got the 360.  If the prices were reversed I'd have grabbed a PS3 with no hesitation.  I don't blindly defend any brand/company, I do research and see what that company can offer me.  Saying price has no effect on console purchases means either 1)  You don't care because your parents are springing for it, or B)  You don't understand economics

YukoAsho
YukoAsho

@Grenadeh Except that Sony was raked over the coals for the first few years of this generation on price.  "$599 US dollars" cost Sony the lead in the US market.

CaptWaffle
CaptWaffle

@Grenadeh  

The problem here is that the price difference is due to the XBone having an extra accessory attached and the PS4 NOT having a similar accessory attached... and that accessory is a niche item to begin with.... I've yet to talk to anyone that even remotely cares about motion controls.  I feel that I'd actually get less for my money with the Xbone due to 3/8 of the RAM being locked into non-gaming uses.

(and before you get started:  I've owned both an Xbox and 360, I'm not someone who will blindly defend ANY company.... that's just what my research has turned up.  Perhaps my view will change with time but that's where I am right now.)

H0RSE
H0RSE

@Grenadeh 

Exactly. I always look at the more expensive item(s) first, like you said, for the assumption of higher quality, then I let my research decide.

H0RSE
H0RSE

@ShakyMonkey  

Yeah. Many of the X1 haters and/or PS4 fans, keep pointing out "flaws" in the X1, like the higher price, the less powerful hardware, the mandatory kinect, etc. yet they never actually look at things that actually matter to people when determining which system to buy.  For me it was easy - I hate the PS controller, and my friends are getting X1...not rocket science...

deadkingdg
deadkingdg

@Disciple_Gamer The PS3 was doing well, but it would never have passed the X360 if it wouldn't have dropped to the same price.

YukoAsho
YukoAsho

@TirOrah Well, it's hard to talk about exclusives when the consoles aren't even out (and in Sony's case, there's still TGS to show stuff at), but the last four years have been absolutely terrible for 360 exclusives.  MS has really shifted focus away from securing exclusives in favor of their living room multi-media push, and I have no confidence that they'll turn that around and keep looking for exclusives after the deals for Titanfall and Dead Rising 3 expire.

IndoorActivist
IndoorActivist

@Grenadeh @starjay009 I think you will find IT DOES have better hardware, and it WILL have better exclusives.  It always has.

Land of the Free, home of the Xbox.

RighteousWoman
RighteousWoman

@CaptWaffle @sephsplace You forgot choice C there Capt. 

C - you make enough money that making 500 dollar purchases every 4-5 years...well, such a purchase become a no brainer. There are people out there with good jobs, making 75k-150k+ per year. Some are even married and have dual incomes. Then your talking 150k-300k per year. Do you honestly think 500 dollars purchases every 4-5 years is a big deal to such people? Trust me, they aren't. 

Grenadeh
Grenadeh

@CaptWaffle @Grenadeh No I absolutely agree. I don't own either move or kinect right now for my 360 or PS3. I don't even care that my Wii was stolen 3years ago because the Wii is garbage and had shit controls anyway. However, I do take interest in the new Kinect on account of the webcam and voice commands and other things it can potentially do. The Kinect is a great device for nerds and has a lot of great real world applications, it's just that for gaming it's kind of dumb.

Grenadeh
Grenadeh

@H0RSE @Grenadeh Indeed. If you see two Geforce cards with a seemingly similar description, same product number, etc, yet one is 100 or 50 dollars more, you want to know why, you don't blindly get the cheaper one. We don;t live in that bad of a depression that price automatically decides all purchases. If it did, I'd have bought a Wii U standard long ago. But no, I want the Deluxe (which is still a crap deal) because it's more expensive for a slight, albeit horrible, reason.

Now that there are finally some games coming out, even though they're all Mario.

Upat3am
Upat3am

@H0RSE @ShakyMonkey Then you will have to wait to use the new design. If your basing your opinion on the pse3 remote then your just being ignorant. Not to offend you though.

TirOrah
TirOrah

@YukoAsho This is true! I don't have a lot of knowledge about Xbox exclusives, either, but I will say that the only one I know about - Halo - is one that will convince at least some Halo fans to stick with the console. I also agree that Microsoft has really been focusing much more on the multimedia thing than the gaming thing, at least considerinng what we've seen so far. I'd say Sony is being smart with all the indie stuff they're investing in. I loved Journey.

TirOrah
TirOrah

@lowerclassbrat7 Heh, well I'm not buying a console at launch, so I have the fabulous position of waiting until launch to judge both. But Microsoft has certainly made it seem that way in the past, haven't they?

H0RSE
H0RSE

@Upat3am @H0RSE @ShakyMonkey As for the way it actually feels in my hand, I'm going off of PS3, as for the location of the thumbsticks, it applies to all of them. I hate where they put their sticks.

Grenadeh
Grenadeh

@lowerclassbrat7 False. As of the end of May the Xbox still had 3 million units sold lead on PS3. These were stats released by the companies themselves and it was here on GameSpot.

lowerclassbrat7
lowerclassbrat7

@H0RSE @lowerclassbrat7  The higher price was the MAIN thing holding it back. If you think a $200.00 price difference wasn't the most glaring problem then you're crazy.

H0RSE
H0RSE

@lowerclassbrat7 So in other words, No - it wasn't just the higher price. Sony had to to improve in places to compete with the 360.

lowerclassbrat7
lowerclassbrat7

@H0RSE @lowerclassbrat7 @Grenadeh @deadkingdg @Disciple_Gamer 

Yes it was price point and coming out one year after the 360. Sony beat the 360 with a price cut and tons of awesome first party exclusives. We both know 360 sales are artificially inflated by purchases of replacement boxes for out of warranty red rings.

lowerclassbrat7
lowerclassbrat7

@Grenadeh @deadkingdg @Disciple_Gamer   The PS3 has already passed the 360  in sales worldwide.  Look it up dude.