Microsoft: $500 Xbox One is a "very good deal"

Yusuf Mehdi says price point is strong value for what system is offering, believes Xbox One is "unique" relative to competition.

The Xbox One's $500 price point represents a "very good deal" for consumers based on the system's capabilities, according to Microsoft Corporate Vice President Yusuf Mehdi.

"In this version, we made a couple of big bets," Mehdi said this week during the Citi Global Technology Conference. "We said that there are a lot of low end simple casual game boxes. We wanted to have something to really differentiate and lets you plays games as if you're playing movies. We wanted to bring that."

Mehdi explained that Microsoft also wanted to "break the barrier" of being able to control a television set fully with voice and gesture commands through Kinect. To do this, Microsoft "added a lot of capability," he said.

"And so the view we feel is that for our $499, our price point, we think the value that we provide for that is a very good deal," Mehdi said. "Obviously, different people will kind of make their choices, but we feel that we’ve done the right balance."

Former Xbox boss Don Mattrick previously said Microsoft was "over-delivering" on value with the Xbox One.

The Xbox One's $500 price point is $100 more than the Xbox 360 sold for at launch in 2005. Mehdi said when adjusted for price inflation, however, "it's actually pretty comparable."

Also during the presentation, Mehdi discussed how the Xbox One is tracking ahead of launch in November. He said the system has been sold out on preorders for "several weeks" now and that Microsoft is on track to have the largest console launch with the Xbox One by a "wide margin."

Mehdi did not give any specific sell-through predictions for the Xbox One, but said he expects there to be "multiple millions of people" playing the new system this holiday and "tens of millions" of buyers in the first year.

"So feeling pretty good about progress; still a lot to do, but we're feeling pretty good about it," Mehdi said.

Mehdi also talked up the gaming industry overall, saying gaming is the "fastest growing segment in all of entertainment" in terms of hours used and dollars spent. He said the gaming market is expected to grow in the upcoming console generation.

The Xbox One will help to grow this audience, Mehdi said, because it is "pretty unique" relative to the competition, as it's an "all-in-one" console that plays games and offers live TV.

The Xbox One launches in November. Mehdi said supply constraints are expected at launch.

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Discussion

647 comments
lostn
lostn

Like with a $600 PS3. Yes it's good value. But only IF people want those features it comes with. TV and Kinect in particular. If you don't want them, then you're paying more for nothing.

coaltango
coaltango

According to Microsoft it's good duh y wouldn't a company say good about its own product

sebbi11
sebbi11

I´ll take one. The console with the best online service and games... hell yes it`s a good deal.

XbotSlayer221
XbotSlayer221

Note to Microscam, Not all gamers are as dumb as your xbots.. The xbone is more of a value not buying it. Thanks you just saved me $500.00

grasshopper6
grasshopper6

no it's not considering it's gonna break with in first year 

Karjah
Karjah

So can anyone name me even a single feature the xone has that the PS4 won't? 

No really I'd love to hear it because if you can do that your now doing a better job then the entire MS marketing team.  

sanveganza
sanveganza

compare ps3 n x360 then you'll find that x360 is much much better from the controller to the live services they keep updating their technology , even exclusives , people just over react at E3 becuz the DRM and other stuff like you have to be online on xbox , look what i saw at sonys E3 was lots of games that already coming to Xone ! should i but killzone 4 that reminds me of Blackops two ???! and hey how can you not be online when 80% of next generation games are based on online worlds ? you are all over react ... if you dont have 100$ more then dont waste your time to say bullshit about Xone , your sony's fan i understand , such a shame they giving away their Bigest exclusive like MGS ... pre-order your ps4 right now , i would be happy to not see you on xlive

Fabian85
Fabian85

Playstation fanboys should be mad at devs of killzone previously releasing early footage  looking spectacular in first person perspective then releasing new footage that looks like something you wouldnt even touch if it was free. They did that with killzone 2 also. Hate on that not microsoft.

Vylsith
Vylsith

LOL @ tens of millions in the first year.  In your dreams Microsoft.  I seriously doubt you'll push 10,000,000 units, much less 20,000,000.  Sony on the other hand, might very well top 10,000,000 units.  The XBox One is not as popular.

JCASHUFL
JCASHUFL

What part of OVER-DELIVERING VALUE do you cretins not understand???

XenoLair
XenoLair

No, no it doesnt. What the hell is wrong with you? And why the hell is it still 500 eur in Europe? I'm mad at you Microsoft.

edinko
edinko

Its starting to get really nasty this forcing people what is good and what has value

mr_azim
mr_azim

LOL - I'll determine what is a good deal, Microsoft.  Not you.

firstlegionary
firstlegionary

"We wanted to have something to really differentiate and lets you plays games as if you're playing movies"

lol so that we don't need controller anymore and let the game play itself? Or better yet, watch ads while playing + QTE for ads achievements? Movies are movies, games are games, don't mix them.

htthanh86
htthanh86

Why I need Xbox in order to watch TV when all I have to do is just turn on my god damn TV?

alastor529
alastor529

triple H is a big bully, he needs to BE a STAR!

the13stuff
the13stuff

They keep saying this, and we keep saying "NO... IT ISN'T"

bloody-hell
bloody-hell

So that's their great marketing strategy ?
Repeating their same desperate lecture over and over again, hoping it'll stick ?

Well of course Microsoft executives say the XBone is a "good deal", they want to sell that crap to people.
The word of independent, incorruptible testers would have more credability and weight though.

Gaming sites should not just parrot what some marketing suits are saying, but ask questions instead.

By the way, his statement about the "all in one" console is pretty stupid - My TV already does TV pertty well on its own and there's no need for a console to take care of that. (another useless extra gimmick)

JustPlainLucas
JustPlainLucas

How many more fucking times are you going to reword the same damn "Xbox is a good deal" article?  Stop.  Just... stop. 

sephaien
sephaien

no it is not a good deal. stop infusing people. 

rainheart16
rainheart16

I swear, Msoft, if I see another article about why I should buy the Xbox1 i'll buy 1....  yeah you wish that no MS? xD lol

VeredusMaximus
VeredusMaximus

The statement "One console is more unique than the other console." means absolutely nothing.

It doesn't stand out amongst its competitors, there is only one other console to compare it to!

XBONE campaign strategy:

1. But really Consumers, it's worth it.

2. We're mad at you consumers, it's a good price.

3. The consumer is lucky it's not higher. Bend over! Oh wait, we already tried that once.

tommynj
tommynj

LIke MS or not , this is pretty true. The Xbox One is more unique compared to the PS 4. There is more than just additional power to a next-gen console. The other thing is how others here complain about MS having live TV but when I look on my friends list mostly everyone watches movies all the time. 

northArrow
northArrow

It's not a very good deal when another device does exactly what you do for $100 less and isn't handcuffed to a useless peripheral

fattycoles
fattycoles

Don't new tv do what the Xbox one is trying to do?

Colekern
Colekern

How is it a better offer than a PS4 again? Or a decent PC? I just don't see why I would want this over other, cheaper or more functional things.

Diegoctba
Diegoctba

Again?

Everybody who works for Microsoft: "Xbox One is a very good deal".

Gamespot users: "Big deal".

applause.

Snakepond1
Snakepond1

I spent $600 on a iPhone, $700 on a iPad I think I can manage $500 for a game console.

SrebX
SrebX

@grasshopper6 I can see the headlines:

XBONE: The return of RROD!

XbotSlayer221
XbotSlayer221

@Fabian85 xbots should be mad at the mess Microscam has made with the xbone. Enjoy your half ass unfinished console..

Fabian85
Fabian85

@Vylsith exclusives is what sell consoles. Unless sony announce something good soon in november or prior when good x1 titles come to the market microsoft will catch up,  

Vylsith
Vylsith

@JCASHUFL The part where the value was worth $500.  That's the part we don't understand...

TKF28
TKF28

damn......i spat my juice at the monitor readin ur post.................lol........ha ha hahhahah. really a sweet one. thanx 4 the joke bro!

Vylsith
Vylsith

@tommynj There's a difference between Netflix and cable integration.  People already have cable.  Why would they need the Xbox One to work with their cable box?  The input button isn't that difficult to push.  It's nice, I suppose, but it's such a minor thing that Microsoft is blowing up into the most amazing TV experience of all time.  It's just marketing nonsense.  Does it make watching TV any more enjoyable?  No?  Then who cares if I have to push one less button.  I sure don't.  I have no interest in talking to my TV.  Maybe you do, and good for you, but I would never use Kinect to change channels.  Ever.

There really ISN'T more to a new console than more power.  That's been the defining factor of new consoles 90% of the time.  It's not like I buy a new gaming computer expecting it to grab me a beer.  No, its more powerful.  That's it's purpose.  I have no idea why people are expecting more from the hardware.  The most they can really hope to change is the controller, everything else is up to the developer.  The console provides the potential, and the developers provide the innovation.  That's the way it's always been, that's the way it likely always will be.  There will be jumps in technology in the future.  Undoubtedly VR and holoprojectors will change the way we play games in the future, but we're not there yet.  Microsoft wants to make you believe we're there now, but we're many years away from that experience.  Kinect 2.0 is just a more accurate Kinect 1.0.  What are we seeing from developers?  Dancing and fitness games.  How is this any different from 3 years ago?  It's not.  Show me something that makes Kinect useful or I won't spend my money on it.

JachAnen
JachAnen

@tommynj It's really not. This is just a very desperate attempt to sell more consoles, because they can't think of anything unique that would lure people toward it.

Only thing unique they have offered is their betrayal and them not understanding the customers they are dealing with.
Many companies would have been forced to shut down after such a thing, and with good reason. But MS can get away with it, just not from me.

Vylsith
Vylsith

@northArrow You forgot to add the word better.  The PS4 does the exact same thing that the Xbox One does, but better, for $100 less.

Vylsith
Vylsith

@Colekern Microsoft purposely distances themselves from the competition.  They pretend that they're in a vacuum where there aren't other options and therefore their system is priced at a reasonable point for consumers.  They're pretending that there isn't another more powerful console that's $100 less that has more developer support.  It's a little painful to watch really.  Denial at its finest.

aci808
aci808

OH MY GOD!!!! YOU'RE SO F****** RICH!!!!

Vylsith
Vylsith

@Fabian85 @Vylsith Sony already did announce good games.  They'll undoubtedly announce more good games.  I'm not sure what you're trying to pretend, but Microsoft doesn't exactly have a stellar lineup for 2014 either.  Halo and Titanfall.  That's it.  I'm sure they'll both do well, but 2 games won't win them the generation.  Sony is still pushing out games for the PS3.  Once that's done they'll start pushing out games for the PS4, and unless Microsoft have a sudden change of heart, the PS4 will undoubtedly have a lot more, and a lot better, exclusives than the Xbox One.

tommynj
tommynj

@JachAnen @tommynj I don't see how the PS4 is actually better. The PS4 is just cheaper with craptastic exclusives. I don't see what the appeal is other than saving $100 that will probably wind up in Sony's wallet anyhow. 

Snakepond1
Snakepond1

Just comparing and I believe it is a good value.

aci808
aci808

Can I be your friend? If you spent $600 on an iPhone, you my friend are f****** retarded.

Karjah
Karjah

@tommynj @JachAnen craptastic exclusives.....seriously.  

Journey, Last of Us God of War, Metal Gear 4 and the Uncharted games were bad?  

I suppose your going to suggest that Halo and Gears being ok games makes the other console games bad?  

I've got news for you son.  No it really really doesn't.  In fact it just makes you look like an idiot when you make such a claim. 

Snakepond1
Snakepond1

Before I waste your time and mine I'll ask you one question are you a Sony fan boy? If no and we can have an intelligent conversation I'll write you a page full of reasons. If yes, I won't waste my time.

Vylsith
Vylsith

@Snakepond1 @TheWatcher000 You didn't actually give an intelligent answer to the question.  Why do you feel that the Xbox One is a good value?  I can afford both consoles and I have no interest whatsoever in the XBox One.  So feel free to explain why the Kinect 2.0 is worth wasting money on.

TheWatcher000
TheWatcher000

@Snakepond1 Did Mommy and Daddy Tell You that when they Pre-Ordered it for you on their Credit Card?

TKF28
TKF28

i guess he dont live on his own r have bills 2 pay. if he did he'd understand why ppl keep sayin it's too expensive. when u have bus fee (caribbean), rent, food, electricty, water, net, and u still need $ 2 last until next pay day. also u still need $ for xbl, more games, new contoller and all the other seperate ting that dont come with the box. if he has a good payin job am happy 4 him but he still need 2 look @ ting from another POV.