Ubisoft CEO on next-gen cost -- "The price is right"

Yves Guillemot says $500 Xbox One and $400 PS4 "good deals," applauds Microsoft's policy reversal.

Ubisoft CEO Yves Guillemot has commented on the Xbox One's $500 price point and the PlayStation 4's $400 sticker price. Speaking with GamesIndustry International, the executive said both options are "good deals" considering the power behind the machines.

"For the hardware they're putting on the market, the price is right," Guillemot said. "They are offering machines that will be exceptional, and for those prices, they're good deals."

Activision Publishing CEO Eric Hirshberg holds a different opinion, saying Microsoft will need to "convince" gamers that the $100 premium will be worth it.

Guillemot also applauded Microsoft for its dramatic Xbox One policy reversal that saw the company remove its controversial 24-hour online check-ins and lift all limitations on used-game sales after backlash from gamers.

"I think consumers didn't like their approach, so the fact they went back and listened to the consumers and gave them something different is a good move to ensure the new consoles [achieve] their potential," Guillemot said.

The Xbox One and PS4 launch later this year.

Written By

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

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Discussion

843 comments
Enforcer246
Enforcer246

PS4. That's a good deal

The XB1? lol.

ApocaLeepse
ApocaLeepse

I'll be waiting anyway. I got burned last time I got the consoles on day one. My 360 went RROD and my PS3 ended up with a faulty blu-ray drive. I'll wait for them to sort out any potential problems first.

focuspuller
focuspuller

I didn't get a ps3 until MGS4 came out.

demiwill2079
demiwill2079

Both options are a bit steep but thats just the way its been not that it matters to me I usually wait 6 months to a year before I buy the new consoles.

Nightdragonist
Nightdragonist

Yes because you're the president of Ubisoft. You have the money to buy them.


UziKill
UziKill

The PS3 sold at a higher price tag than the Xbox and still made good sales. I'm not worried. $500 is still cheaper than the original PS3 price tag... 7 years ago. The only ones complaining are the Sony fans and the teenagers with no money. With the PS4 camera (sold separately) you get to basically the same price tag. Get over it. I'm sure you paid more for your iPads or iPhones.

KratosHump3R
KratosHump3R

oh look another idiot kissing ass to get in on the next gen console action

Mizkreant
Mizkreant

"The price is wrong, bitch!"

Nescabar
Nescabar

Microsoft may have everyone fooled into thinking that they care about the consumer's wants and needs but, in the end, Xbox did it for the money

Xbox consumers are stupid but not stupid enough (thank god) to settle for shitty policies.

You're not fooling anyone, Micro$oft...

ken4062
ken4062

500 dollars will always be a 100 dollars more to any casual observer/mom/dad/family member buying a person a holiday gift console. They wont take into account Kinect or all in one features. Assuming all in one features even mattered in the first place to most buying gaming consoles which it usually doesnt when factoring in a 100 dollars difference. 

cirugo
cirugo

that's for the people buying them to decide

I_Guess
I_Guess

Sony is super smart. They are selling a cheaper console, so, even if they sell a little bit more they will make less money than MS. Its logical right? WRONG.

This is were exclusive games come in. Sony doesnt only have more exclusive third-party games, as they own plenty of studios that will make a fortune. Ain't nobody got time to figure this.

Well played Sony, well played.

MN121MN
MN121MN

Uh, Yves, are you supporting next-gen consoles, or are you supporting next-gen hardware?

SpicaAntares
SpicaAntares

A little history:

When the 360 got into the market there was no PS3 in sight. The 360 sold for around $400. A year later the PS3 arrived and MS lowered their price to around $300. It's called 'sodomizing' the adversary.

The first generation of PS3 was much more expensive to produce. While the 360 only has a DVD drive, the PS3 included a Blu-Ray drive, a new technology at the time. It had a new processor developed by Sony to play games and handle hi-res video. It had multiple memory card reader. On top of that it had all the circuitry of a PS2, giving it 100% compatibility to past generation games.

The 360 had nothing of that and was cheap to produce.

If MS maintained his price structure on the 360 Sony, which had a console much more expensive to produce, would have sold their console close to the 360 price and would have still lost some money on it, but much less. MS suddenly lowered their price forcing Sony to do the same and loosing much more money right from the start. Sodomy.

Over time Sony removed the PS2 circuitry, simplified the console, and here we are today.

Sony fought MS on the adoption of a new CD format in the war between Blu-Ray and HD-DVD. MS lost and the best format won.

In this new console war it is clear that Sony waited for MS to move and returned the favor. MS got sodomized and now knows how it feels. On top of that, MS smart as they are, took the customers for a bunch of sheep and tried forcing crap on them. It's called: looking down the barrel and shooting yourself in the face.

This war is not finished yet but close to it. Why? Because both know, or should know, that no console will be sold in quantities unless they get close to the $300 point, the sensitive point were most customers buy or wait. Early adopters will pay full price to get them first, but then sales will stagnate. Sooner or later the price will have to drop because no publishers wants to produce a game that sells to a small base of console owners. If consoles don't sell, games won't be produced, simple as that.

Sony now has a cheaper console to produce and can now play MS tactics on them as much as they want to.

roman4545
roman4545

the only good deal is... hey ubisoft why dont you drop your online pass.. im sure many consumers doesnt like that either.

Blue-Sky
Blue-Sky

Really both systems should be $600-700 This is the only industry where products are sold at a lost because of customer entitlement...

Shiftfallout
Shiftfallout

@Nightdragonist Any working individual can afford a game console with enough saved up, but thats not the point. Are you entitled to a console?

The hardware in these consoles, if it was in a PC, would sell for much higher than the asking price. They are selling these consoles at a loss.

If you dont want any hardware improves, no 8 core cpus or 2gig graphics cards, just say so. Tell the industry you would rather have older limited hardware for cheaper. Because thats what it comes down to. If you want next gen games you need next gen hardware, and that doesnt go for cheap.

XxParasite
XxParasite

@UziKill Actually, my iPhone came with a 2-year contract and a subsidized price.

justerthought
justerthought

@UziKill Why do you MS fanboys always compare the failings of the XB1 with the failings of the PS3. Sony learned their lesson. We are talking next gen now. The PS4 should be your bench mark for comparisons. Explain why MS1 is more expensive, when PS4 has 18 GPU compute units compared to 12 inside XB1, and has very expensive RAM. The fact that Sony allow us to opt out of the spycam, does not warrant the extra $100 on XB1. I actually want XB1 to succeed in order to keep Sony on their toes with competition, but your wasting your time trying to justify XB1 to me. I'm afraid you loyal MS fanboys are gonna have to sucker up and get your credit cards out. I'm sorted :)

GONtheSKYLORD
GONtheSKYLORD

@UziKill Why would sony fans complain about juan's price? Wouldn't they be happy that it's priced higher and has a downside because of it? derp.

TheManofTin
TheManofTin

@UziKill Teenagers with no money? I'm sorry Mr. ImsorichIdontrobbanksbanksrobme, but just who exactly has money these days? Well, "Xbox One is still cheaper than the Atari 5200 was in 2006 dollars", doesn't exactly justify any sort of purchase. And no, I'm not defending Sony, or MS or any other business since I'm not a drone. 

Kalbent
Kalbent

@UziKill you don't get the same price tag. PS4 with the eyetoy is still $40 cheaper than xbox one. This isn't about fanboy or w/e you call it. It's about NOT letting M$ or any company screw  you over, $ony included. I hate to break this to you, but companies do not see you as human beings, only cattle waiting to be fed mindlessly. And you saw the crap M$ tried to feed us...

TheManofTin
TheManofTin

@Nescabar I'm sure they're only in it for the money (what company isn't). Little girls don't make lemonade stands because they love the sun and desperately want skin cancer nor does my grandma sell cocaine because she supports the narcotic. To me, Microsoft has never been good at selling a product throughout their history. They've sold their products through convenience (especially in pricing), accessibility and technological innovation. I doubt they've ever had an understanding of the consumer, dating back to when Bill Gates was first toying with Harvard's computers. Microsoft definitely had high ambition, or rather some convoluted vision, with Xbox One, but they have no concept of what their consumer wants or how to sell a product. See: X1, Windows 8, Windows Phone, etc!??!

TenraiSenshi
TenraiSenshi

@Nescabar You made two mistakes in your comment. The first was pointing out the glaringly obvious, seeing as how ALL companies are in it to make money (not just MS). The second was calling Xbox consumers stupid, which was an unnecessary addition that just makes you sound like a troll.

mjswooosh
mjswooosh

@SpicaAntaresExactly my thoughts on this. Both consoles are north of the $300 sweet spot, but one is $100 more and the other is $200 more. 

Do we have any historical examples of higher priced consoles selling more than than a lower priced competitor? Thinking back on the console sales wars it seems to me that all other things being roughly equal, consumers are almost always value conscious and usually choose the cheaper console.

When you take into account the fact that the PS4's hardware is significantly more capable for gaming and MS still hasn't figured out how to tighten its message and convince people why the Kinect 2.0 makes the One worth $100 more (when most gamers view the Kinect 1.0 as totally useless), then I think things get very dicey for the One's 1st year-over-year sales. I'm not saying the One is going to fail outright, but I'd be very surprised if MS isn't almost immediately forced to offer a SKU without Kinect at $399 or less to keep pace with PS4 sales.

edinko
edinko

@Blue-Sky What are you talking about? The PS4 will be sold at a profit. The hardware is really cheap .I don't know about the xbone but the PS4 you can easily google.

Black__Puma
Black__Puma

@Blue-Sky Wrong. This is a high-tech entertainment industry with long-term strategy. It is true that Microsoft and Sony lose money with every console they sale. However, they are making tons of money in the long run with the games and nowdays with digital content like video on demand, DLC, App-Stores and so forth. 

If one goes for PC with this kind of specs you are likely to put 1000$ on the table with little outlook that your system will endure the increasing demands of games. If this was not the case then consoles would not have surged in sales as seen in the last decade. 

UziKill
UziKill

@GONtheSKYLORD @UziKill If you look at many of the post on this web site you'll notice that Sony fans find every excuses possible to say that the Xbox is a bad choice. This is just one more reason. Personally I think the console is worth it's price. We may like it or not but you get more out of the Xbox with the TV options, the integrated Kinect 2.0 and other cool new stuff.

UziKill
UziKill

@TheManofTin @UziKill If you had money to buy a PS3 7 years ago, don't tell me $100 difference is not worth a 10 year investment in a console. $100 is nothing these days... unless you don't have a job... then even $400 would be expensive...

UziKill
UziKill

@Kalbent @UziKill This is what we call "Capitalism" and every company's goal is to make money. These practices are  not limited to the videogame industry. Has much has we hate it, it is the world we live in. You think a company like Apple or Samsung or any other are selling products just to satisfy consumers? No. They are selling products to make money period. They try to find what you need and sell it to you. You can't blame a them for that, otherwise they would go bankrupt. At least MS listened to their customers and readjusted accordingly. Not enough companies do that.

Nescabar
Nescabar

@TenraiSenshi @Nescabar  I whole-heartedly stick by my statements

Sony has been there from the start caring about the gaming experience over making a quick buck and, general consensus is that Xbox is only there for the money. 

Think about it: Xbox offers their DVD games for the same price as Ps3 did for their BLU-RAY QUALITY games. Xbox makes you pay to use third party apps like netflix along with internet. The PS4 may be doing that in the next generation but they offer at least three free games every month and other worth while uses with their Playstation Plus membership. And it's not just the Indie genre games, they're good games like BioShock 2, Darksiders, Ratchet & Clank All 4 one, etc.

Lastly, yes. Xbox consumers are stupid. Why? Because knowing that they are getting bent over a figurative table and told to grab their ankles while microsoft has their way, they still have the balls to say the Xbox is the superior console regardless of all of the facts that are shoved down their eager throats. Finally, most of the Xbox fans were shown that microsoft only cares about the money through their revoked policies but still, we have a lot of die hard fans that still wanna defend their console


I mean seriously. You wanna buy a console from the guys that made Windows 8??

SpicaAntares
SpicaAntares

@mjswooosh @SpicaAntares

"I'm not saying the One is going to fail outright, but I'd be very surprised if MS isn't almost immediately forced to offer a SKU without Kinect at $399"

They can backpedal to China but I think it's clear they lost it in the heart and minds of consumers.

I don't see how they can overcome that.

Corporations needs lessons from time to time.

SpicaAntares
SpicaAntares

@mjswooosh @SpicaAntares 

Fact is middle class is disappearing everywhere, everything is now produce in Asia meaning better paying jobs have disappeared for many, salaries have stagnated for the past 20 years and we have massive unemployment around the world.

Families don't have more money to waste, they have less.

Less money means they won't drop a grand on a new toy. Because this is what it amounts to when you factor in another controller, a few games, some pay service, taxes.

deathstream
deathstream

@edinko @Blue-Sky 

Not sure if PS4 is still at profit.  They dropped the price $100 by dropping a $60 camera.  I think Sony is gambling.

Shiftfallout
Shiftfallout

@Nightdragonist I am primarily a PC gamer as well, but when you look at the bigger picture... the cost will inevitably go up. Games are not just for kids anymore (not that they originally were to begin with). A lot of those kids who had the original nintendo console are about 30-40 years old now, they have money and kids of their own. The average gamer is around 35 years old.


Mix that with the higher cost in development and the higher hardware, gaming as a hobby has to cost more. It really comes down to if the parents will invest in expensive toys (computers) for their kids or not.

Nightdragonist
Nightdragonist

@Shiftfallout @focuspuller @Nightdragonist 

You have a point.

But the fact that many of us complains about the price of Xbox. That's the point that i'm trying to say.

I never had a console in my live because somehow PC is enough for me. But this year next gen consoles are interesting. I admit they're good (forget WiiU). I want them. But.. I'm just a kid, my parents wouldn't let me buy them

Shiftfallout
Shiftfallout

@focuspuller@Shiftfallout@Nightdragonist

I build my own PCs champ. The last PC I built is an 8core CPU rig with 32 gigs of ram and 2x nvidia card in SLI mode.

What you need to keep in mind is that the PS4, for example, has a custom amd 8 core cpu (already running well over $100), the GPU is a custom radeon hd 7800 (another $200+), the shared 8gb of ddr5 RAM is hard to put a price on because its not available in stick form, but you are already look at something around the $100 mark. The you have the case, the motherboard, bluetooth and wireless adapters, BLURAY drive (easily over $100), power supply...cost for software development (custom OS), and then the controllers themselves.

You are looking at something closer to $800 than $399 if it were a PC.

So here is my question to you, when was the last time you were on a PC parts site AND on a PS4 specs site.

The story isnt much different for the XB1 which comes bundled with a kinect as well.

UziKill
UziKill

@TheManofTin @UziKill I Won't deny that for some people 100$ is a lot of money. Sure new comers might go for the lower price. What I'm saying is that it's not enough to make an Xbox fan switch. I would not sacrifice my Gamertag, my achievements or my friends list for that amount of money. Specially for a close to 10 years investment.  Assuming both consoles were the same price, which one would you go for? And be honest please.

TheManofTin
TheManofTin

@UziKill @TheManofTin Who had money to buy a PS3 7 years ago when it was 600 dollars and had no games! You have no argument. 100 dollars is nothing these days? So you wouldn't minding throwing out a hundred bucks just because you have a job and will get money for more of your work regardless and money is no objectblahblahblah?? In that case, just have your boss send a quarter of your paycheck to Sony/Microsoft/Nintendo. And in what world is 400 dollars not expensive? Seriously, if you're rich and all, cool, but don't act like we all can pull money out of our a**es.  

justerthought
justerthought

@UziKill @Kalbent Keep telling yourself there is no other way and go buy the XB1, I'll be having fun on my super smooth PS4 while your crying into your XB1 spycam saying "I still love you Microsoft."

barrica
barrica

@Nescabar @TenraiSenshi  this is no different than Iphone vs Galaxy or 3d Passive vs 3d Active, yes i agree with you i been with xbox 360 on the current gen, paid for live when it was free on PS3, and what did Microsoft gave me? RROD on 2 consoles, thays why il never go back to Microsoft, not even if i buy a pint of milk and im ofered an xbox one, Microsoft is the only company who openly fuck their costumers and i dont understand how people still want to remain with them. This was the only console i had from Microsoft and it will be the last, im doin a Don Matric and jump ship!

paaaaaaint
paaaaaaint

@Nescabar @TenraiSenshi "Xbox makes you pay to use third party apps like netflix along with internet. The PS4 may be doing that in the next generation" not true only multiplier online will require psplus third party apps like netflix will still be accessible for free 

Nescabar
Nescabar

@TenraiSenshi @Nescabar I never said people were stupid because they had a different preference. I said that people were stupid because they continue to purchase from a company that is second rate in the gaming world. Compared to Nintendo and Sony, Xbox is waaay below their league.

TenraiSenshi
TenraiSenshi

@Nescabar @TenraiSenshi I never said which console I wanted to buy. I just don't think saying people are stupid because they have different preferences to you is very fair.