Microsoft defends Xbox One $500 price point--"We're over-delivering value"

Xbox boss Don Mattrick says when compared to other modern products, $500 is not a "ridiculous" price point.

Microsoft's Xbox boss, Don Mattrick, has spoken out to defend the Xbox One's $500 price point, saying the company is in fact over-delivering value with the next-generation system.

"It's a lower number than some of the analysts had forecasted," Mattrick said on Bloomberg TV. "We're over-delivering value against other choices I think consumers can get. Any modern product these days you look at it [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."

Competitor Sony will offer its PlayStation 4 at $400 this holiday season, but Mattrick believes consumers will choose the Xbox One for its suite of exclusive services and applications like an improved Xbox Live, as well as Skype, Twitch TV, SmartGlass, and Kinect.

"We're really making the living room your center of fun for your family," Mattrick said.

Also in the interview, Mattrick refers to the new Xbox One Halo title as Halo 5. This game was announced during Microsoft's E3 briefing last week only as "Halo Xbox One."

Every Xbox One will include a Kinect 2.0 sensor, while PS4 gamers will need to pay $60 to purchase a PlayStation Eye camera.

Got a news tip or want to contact us directly? Email news@gamespot.com

Did you enjoy this article?

Sign In to Upvote

eddienoteddy

Eddie Makuch

Eddie Makuch is a news editor at GameSpot, and would like to see the Whalers return to Hartford.
Quantum Break

Quantum Break

Follow
9137 comments
Alex_09
Alex_09

Gamers always have been confused about the meaning of value...

"It cost 60 dollars so that's what it's worth!" .... Then they try to sell that product back to a gamestop a week later and are offered 10 bucks.

thingta42
thingta42

Again with this living room crap. What gamer spends his hard earned money on a 500$ games console not including games and other stuff, so that his little 5 year old can play his games all day in the comfort of the "Living Room"

I tell you now if i was to have my PS3 in the living room my parents would get pissed at me for spending too much time on it and whine that im hogging up the TV and make me play it in my bedroom.

Gamers just want a console that can just play games on. That's it. They are tying to make the Xbone into a Wii, Problem is, the wii is a family console and most households have that device in their living rooms due to the games. And that's why it worked! us othe gamers had the PS3/Xbox.

The Wii will continue to sell for years to come for the familily household that wants a family console. The Wii-U is The gamer version pretty much.

Emoboii93
Emoboii93

I refuse to buy the kinnect . If it means not buying a new xbox. Yeah i won't . give me an otpion to not get the kinnect and we'll talk. but i still wouldn't cuz the ps4 has better hardware and it still is 100$ more than the ps4.  And i can live without halo 5 microsoft. lol....

ApocaLeepse
ApocaLeepse

I didn't even ask for any of this! I just wanted to play games. At this point, I'd be spending a couple hundred more dollars on features that I am never, ever going to use!

zenstrata
zenstrata

Over delivering value?  Ok lets look at the list.

1 A camera and microphone bundle called Kinect which makes good games suck and pretty much ruins most of the experiences I may be looking for in a game console.  For proof just look at the games that have come out on kinect, and have been absolutely terrible - most of them. The franchise titles that were ruined - most notably Steel Battalion and the Star Wars kinect titles - the only thing it does well is dancing titles, and honestly, who is really interested in those?

2 Television options I will Never Use because I do not watch TV and have not for the last 18 years.

3 Internet options for stuff I don't use or have an account for like facebook, twitter, and all that other nonsense.

4 A complete Lack of one of the few things actually useful in multiplayer gaming - a basic headset, and lets not forget you force me to buy a proprietary version straight from you, instead of just plugging in my own.

5 And what about options that I might actually want as a gamer?  Like say the ability to buy and install my own hard drive to expand the system in a way that might actually benefit me?  Oh yes, you will have proprietary HD's available that are probably more than double the cost I would spend on my own.

6 an utterly useless smartglass connection - why would I want to balance a tablet on my lap and have to put down my controller, during a game, to pick up the tablet to do something I should have been able to accomplish with a simple button press on the traditional controller?  Not to mention I don't even own a smartphone or a tablet, so once again, this is utterly useless.

Where is the value again?  I think MS has lost it.  This is not a device aimed at gamers or gaming.  It is some sort of frankenstien monster - overcharging for a pile of 'features' that I don't need and will never use.  No thanks.

Scholar_Of_Time
Scholar_Of_Time

Let me get this straight Don, so your tellin' us to give you money for some crap we'll never use, to prevent us from doing what we always wanted to do with a "VIDEO GAMING CONSOLE" in the first place??..

Besides...with that kind of money, I can buy a PS4 AND a Videogame!!...

Pff!!...fend it for all I care, I'm still rootin' for Nintendo...

buriedanger225
buriedanger225

I'm a Sony fan boy through and through but i also hope MS does well because I'm going to own both anyways and I want them to both push the boundaries in gaming. With that being said, MS can come off being so arrogant, I really hope they can justify all these claims that have been made.

LOXO7
LOXO7

Thousands of dollars of value?  That camera must be expensive.  They could even add to their mythical value if they included free multi player and backwards compatibility. 

Nah.  Forget practical value.  Stick with the imagined kind.

MasterManiac772
MasterManiac772

Xbox One: Delivering you moar Haloz and Call-a-Dooty.

Some big announcement. So shocking.

DoxaAgent
DoxaAgent

Over-delivering on the bullshit more like.

jefferson1964
jefferson1964

wait and see, when enough folks have both and all the pro's and con's are out then I will buy until then I will enjoy my 360 and ps3

Darksider141
Darksider141

"We're delivering thousands of dollars of value to people" lol

Seventk
Seventk

Sorry.  I have no need to wave my hand and yell at my TV to do shit.  I also do not need the extra HDMI inputs when I have a receiver for my surround sound and other devices.  Taking out a $10 headset and giving me a $100 camera is not worth it.

Space_Paranoids
Space_Paranoids

'Mattrick believes consumers will choose the Xbox One for its suite of exclusive services and applications like an improved Xbox Live, as well as Skype, Twitch TV, SmartGlass, and Kinect.' ... No, I choose games.

Speranza318
Speranza318

Microsoft is truly a giant troll.  The specs in a PS4 and Xbox One are so similar hardware wise.  How is Sony able to charge $100 less?  When you compare $400 to $500 for almost the same hardware, you're not "over-delivering value".  You're failing at basic math.


Also, the eye is not $60 unless you're buying it from Microsoft and they overcharge you 20%


If I want to make my living room the center of attention, I can already just turn on my tv....and connect my PC tower to my tv if I needed.

whitexlotus
whitexlotus

''i come with chopstick and shove up mattrick's ass''(chinese accent)



JimmyJumpy
JimmyJumpy

I'm sticking with personal computers anyway, so...

Chimzard
Chimzard

Oh Micro$oft. I sincerely want to "Kinect" my foot to your face two times as much now. 

BLaverock
BLaverock

Love this article. I read it when I need a laugh. Microsoft is funny...

Meta_Dragon
Meta_Dragon

"We're over-delivering value"

Take that value, and shove it. Shove that Kinect while you're at it.

Elann2008
Elann2008

Xbox One:  "Over-promise. Under-deliver."

sonicare
sonicare

$500 isnt a ridiculous price point, but it's $100 more expensive than your competitor.  What we've seen in the past is that video game consumers tend to look more closely at price than value.  You'd think they would have learned from Sony's fiasco with the ps3.  Sometimes I wonder how supposedly smart people can miss the mark.

UrbanMessiah
UrbanMessiah

Silly, silly Mattrick....I never tire of the brazenly dumb things you say in interviews. -=)

zazzaro
zazzaro

The problem is the over delivering value that no one wants or need Unless you are a straight up couch potato that spends tons of hours on the couch watching TV and playing video games.

DamnILoveGames
DamnILoveGames

Regardless of whether you're 'over delivering value' or not, $500 is $500, and your competitor is still $100 cheaper.

Agent-M
Agent-M

[Microsoft Executive #1] "Guys how can we con - I mean convince these saps to fork over $500 for our Xbox when Sony's machine is whole $100 less?"


[Microsoft Executive #2] "Just add the word value in there somewhere.  If it works for McDonalds it'll work for us."


[Microsoft Executive #3] "HahaHa value...  Pfft, As long as these suckers don't figure out we added a whole bunch of useless features to hike the price up!  I'm fine with whatever gets these suckers to put more money in our bank accounts!"


[The entire board of Executives] "HAHAhahAHhAhahahahAHahahahAhahahahAH"

Snakepond1
Snakepond1

I must be rich because compared to my ipad, iphone, Xbox 360 elite and pc this thing is peanuts. 

gkoolaid
gkoolaid

LMAO if only I could get a youtube video of the Microsoft big wigs in there suits at a conference and the guy in charge is like "OMG don't they get it We're OVER- Delivering value." (and his voice cracks on the OVEr) Lol these statements sound like they came from kids who got beat up in school.

vissioner
vissioner

its all right saying its not over price for what you are getting but here in the uk we are getting half of a machine I know its based in America where they are going to get all theses things with new machine and like we allus  uk people do is wait till we get are half machine into a full machine hence sky sports live tv lol

Kismetic
Kismetic

"Overly-Delivering Value" sounds kind of douchey. (Sucky choice of words)

Batosai001
Batosai001

Why do I need twitter to play video games?

mjswooosh
mjswooosh

Leave it to some tone-deaf MS geek to come up with some totally out-of-touch corporate-speak phrase like "over-delivering value", whatever the fuck that means. lol

The bottom line is the One is priced $100 higher than the PS4 and it remains to be seen if gamers see actual value in the Kinect 2.0 or not. I for one, will never buy a One until MS offers a SKU without a Kinect at $349. Period.

MS did the right and smart thing by shit-canning the horrible anti-consumer DRM (for now) because they knew they were going to get destroyed in sales if they didn't. Reported pre-orders at all major retailers like Gamestop/Amazon/BestBuy was as much as 5:1 in favor of PS4 prior to the reversal. So, MS back-pedaled because they had to. But, they still have a big problem: the PS4 is significantly more powerful (fact) and $100 cheaper. And, in case anyone isn't paying attention to the news lately, US citizens don't take kindly to being spied on by corporations or the government. Regardless of MS's intentions, it's mind-bogglingly stupid to *require* a camera be purchased with every One given the current political climate and people's fears about being surveiled by "Big Brother". It just proves how tone-deaf MS continues to be.

Remember your history MS: Sony "over-delivered value" with PS3...and tried to force gamers to pay more for features (Blue-Ray) they didn't want to have to pay for at the time.  PS3's sales were terrible until Phil Harrison (ring any bells?) left and Sony offered a re-design and a price drop. And, keep in mind, this was in 2006 when the economy was still booming. In 2013 we are currently still in a global recession and people have LESS money to spend now than back then.

$500 is too much when your competitor is $400 for a more powerful console. That same $500 gets you a game and an extra controller with every PS4 purchase. "Over-delivering" doesn't matter.

kaiserdisco
kaiserdisco

"Hey you should really buy this for 500 dollars because we included all these features you already have on your computer or tv"

kaiserdisco
kaiserdisco

no one cares about the kinect or playstation eye.


LordCrisp
LordCrisp

Please support wired Xbox 360 controllers on the Xbox One, you won't really loose anything like that, since most people only has the wireless. But people with stearingwheels and fightsticks would get something out of it, and all that is bought from 3rd part companys anyway.


It would REALLY make a big difference for people with "wheels or sticks" since those types of controllers are really expensive and for both of them there's also a lot of people making their own mods to them. So it would save people a lot of money and time, and it would help you guys sell more games because people don't have to use  an extra 200-400$ on controllers they basically already have. 

Hope you read this and really think about it.

Thanks a lot for bringing back Killer Instinct to us, and thanks for listening to the community about the DRM!

drokmore
drokmore

I love that he's using Skype as a selling point. Um it works great on my cpu for free thanks.

TroyM1
TroyM1

Wow, I love how people bash a price point. Ya, I think $499 is a little nuts but everyone can thank Apple and Samsung for the pricing. Apple over-prices the shit outta their products and droves of people still buy them, Hell MS even had to get in the game with the Surface because of low pc sales. If Tablets and Smartphones weren't so popular I think the prices of consoles and games would be a little cheaper not much though. There isn't a lot of product out there that cost less than the $399 and $499 at retail price. IMO I think what MS is giving you for $499 isn't bad. I mean really the xbone is far superior to any tablet and is cheaper than most store bought pc's plus your getting the sensor, a controller and the "I think" the best online service available. With PS4 you get the console and a controller for $399 plus you have to buy the Eye which is $60 or $70, which people will at some point buy because every control has the move built into it and youll need the eye to even use it. In reality both systems are very close to each other in price and features 

DpwnShift
DpwnShift

Just when we thought this company was in the deepest possible hole, Don Mattrick finds a shovel.


I can't believe I bought their last two consoles...

liffi
liffi

Only thing here is that not every-one wants kinetic and they are must pushing it to us and saying we are selling this system with ok price cause it has whole lot of things here. They should have just take kinetic away and sold 400 to people and they would have sold xbox one like no other. 

mooooo99
mooooo99

it is far too much money for a console.. you could build a decent computer with that money.. still i'll be getting a ps4 so xwhatever..

dmastor
dmastor

Sony Rule kids on the internet, Xbox people just buy systems. You'll see half of these people don't even have money to buy either system. Pre-sale sony is winning but gap is closing and will once system drop fact PS4 coming out after Christmas will hurt

wide_ocean
wide_ocean

My bedroom is the center of fun. You're not the boss of me, Microsoft.

duuuuuuude1
duuuuuuude1

Some high paid analysts are saying it's too much money.

kgallis21
kgallis21

Value huh. Same ting Neo Geo said back in the 90's when they were selling their 24-bit systems for 600 bucks and games for 100. We have to learn from our mistakes people

innocent69
innocent69

$60 Eye camera, $50 Move controllers, $30 Navigation controller.....WTF ?

criticalmass-_-
criticalmass-_-

"We're delivering thousands of dollars of value to people"....... really, since when does a bypass for using your set top cable box cost thousands of dollars? the new Xbox still needs you to have a cable subscriber with a paid cable subscription to even use that feature, not even to mention you HAVE to be a paid Xbox live subscriber also. there is nothing in the new Xbox i want, what skype?? GTFO! how about the "cloud" lmao.... really? even ps4 has "the cloud" its called Gaikai and atleast they said next year youll be able to stream your content you bought this gen on next gen. now how about those games...... another lol, even the games they showed during E3 was a bunch of BS, 70% of the games they showed off are not console exclusives, they will be on both PS4 and PC. the best part is all the smoke these MS executives are blowing up our @sses will be for nothing and swept under the rug by game journalist next year after MS drops the prices dramatically and hushes up the negative reviews and feedback.

kisado87
kisado87

It is when you slap a kinect on to it to rake in more money. But thanks for trying.

allever
allever

Just remember people, what will make or break a game system are THE GAMES.  Sony has the advantage with hardware, but that means nothing if it doesn't provide good quality games.

Microsoft is being greedy because they know people will buy it for $100 more.  They want to make more money from early adopters.

brainiac1988
brainiac1988

"We're delivering thousands of dollars of value to people"

lol what?