Xbox One pricing 'key' to platform's success, says analyst

Robert W. Baird industry watcher says Microsoft expected to subsidize next-gen platform, potentially through partnerships with media companies like Comcast.

Xbox One pricing will be "key" to the next-generation platform's success, Robert W. Baird analyst Colin Sebastian said in a note to investors this week.

Microsoft shared numerous details for the Xbox One during its reveal event on Tuesday, but pricing for the system was not among them.

Sebastian said he believes Microsoft will subsidize the Xbox One, potentially through partnerships with media companies like Comcast, but did not provide a price point estimation.

Microsoft specifically name-dropped Comcast during its demonstration of how the Xbox One can stream live television this week. In addition, a Comcast Xfinity viewing app for the Xbox 360 is currently available. However, no new partnerships from the companies have been announced.

Not all agree that Microsoft will offer a subsidized Xbox One. Noted Windows blogger Paul Thurrott said earlier this week that Microsoft's plans for a subsidized system have been scrapped, but did not elaborate any further. He expects the Xbox One to launch at $500.

Microsoft currently offers a subsidized Xbox 360 through its official stores. Gamers can grab a system for $99 if they commit to a two-year Xbox Live Gold subscription at a cost of $15 per month.

According to comments from GameStop management, the Xbox One will launch at a lower price point than the Xbox 360 did in 2005.

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

285 comments
Lillypaw
Lillypaw

Key to success it's already dead, if they gave me one I'd only sell or trade it in.  Never opened condition.

Wever1988
Wever1988

500?.... I won't be getting one.
Rather put that money on the bank and save up for a new bike.

lostn
lostn

They won't get away with selling it for $500 and neither will Sony. The hardware inside doesn't even justify it. The GPU is a few generations behind what we have on PC right now. 


At most, I see it going for $400, or $300 if subsidized.

Gravity_Slave
Gravity_Slave

How do we go from $35-$49.95 a year for XBL service to $15 a month?!

Almost makes gas price hikes seem reasonable.

guitarist1980
guitarist1980

1.6 ghz xbox --- 2.0 ghz PS4

DDR3 2133mhz xbox one vs GDDR5 PS4

12 GCN cores/ XBOX One vs 18 GCN cores PS4 (4 cores rumored locked)

AS far as hardware so far the ps4 has a slight upper hand in the gaming department.. but the main thing I would be concerned with is if Sony is locking 4 of there GPU cores and if Microsoft is clocking there cpu at 1.6 ghz.. And if Microsoft does lock it at 1.6 ghz they are clearly just so afraid of another RROD scenario. Because the tech they are using they can easily get those cores up to 2 ghz easily. So as a gamer I would be looking at the CPU clock and I would be looking to see if sony is going to  launch the gpu with 18 unlocked GCN cores.


But I can say with certainty that all multi-platform games will be identical regardless.

Dat-tsu
Dat-tsu

You know what would be "key" to your platforms success? Doing the exact opposite of everything you've been doing with this console. 

brainiac1988
brainiac1988

Even if it wasnt for the used games fee, online system check every 24 hours,  mandatory kinect and voice crap.. 

Im not gonna buy a console from a company that doesnt even present their device as a true gaming machine..

Besides.. PS4 has a faster CPU (2.0 Ghz whereas the X360 has 1.6), Faster RAM memory, and a slightly better GPU.

MS will have to come up with something truly groundbreaking at E3 otherwise its an easy choice for me. Playstation 4

hadlee73
hadlee73

I should totally be an analyst. All I have to do is tell people obvious stuff like "pricing is key for [insert product name here]" :P

On a serious note, I'm actually surprised they scrapped the subsidized idea. It sounds like they want their money fast, instead of later down the line.

charlesdao
charlesdao

With the kinect(that you NEED to have) it will costs 499...

huerito323
huerito323

Can I watch my VHS tapes on it? If not, I won't buy it.

Shielder7
Shielder7

I don't care what they charge I don't want one.

Curbdog51
Curbdog51

I want a gaming console that concentrates on gaming alone. I don't want to be forced into a price point that includes a bunch of non-gaming related stuff. At this point, it sure doesn't look like the Xbox One fits the bill. Sony is pulling all the right moves going into this next gen.

tightwad34
tightwad34

Pricing is a key to success in almost everything you try to sell, unless it's for the rich.

Gamer_4_Fun
Gamer_4_Fun

100$...take it or leave it Microsoft B\

Jake518
Jake518

I hope for those who are buying an XBox One that the price is not $500, even though I'm not buying one.

ryanPwnZzDoA
ryanPwnZzDoA

where Microsoft stands right now. Is it really time to enter the Next gen world? Xbox 360 is still going strong. and I know for a fact not many people will make the switch that quick!

Moonco
Moonco

McDonald's Happy Meals will include a free Xbox One next year, forcing kids to eat at Burger King

Taz_12_Dave
Taz_12_Dave

Make it reasonably priced for the casual gamer. £ 200 .00 - £ 299.99

USNavyTech
USNavyTech

Wow. Over half the people on here have got to be either completely clueless or they only think they know what their talking about. Alright lets address some issues. 1st issue the Kinect. People are concerned about it watching them. Alright that's understandable but what about that camera on your cell phone, tablet, or laptop? They are also saying that controllers are better than voice recognition yeah if your still living in the last era. Which is easier scrolling through something or just telling it to go straight there? 2nd issue the System itself. The Xbox One and the PS4 pretty much share the exact same hardware with the exception of the PS4 having a slightly better graphics card. Key word there SLIGHTLY better. People complain that the Xbox One having 3GB of memory committed to multitasking is bad because the PS4 only committed 1GB. Yeah sure more memory is committed because the Xbox One can do so much more than the PS4 multitasking wise. Then people are complaining that the Xbox One uses the kernel of Windows 8. The only thing that is bad about windows 8 is the User Interface or the metro as it's called. The kernel that is being used is extremely solid and fast so just because they uses the kernel doesn't mean that the Xbox One is running Windows 8 it's only running the core not the entire operating system. Another thing that people complain about is the fact that the Xbox One does so much. Alright people it is 2013 if the only thing your console can do is play games then your an idiot. Which is smarter buying one thing that can do multiple things or buying multiple things that can only do one thing each? Microsoft made it clear when they started their press conference that it was just about the system and it's capabilities that they were going to wait till E3 to show off the games so for all you people complaining about not seeing any games or game footage wait till E3 and stop complaining. The Xbox One is a superb system and easily beats the PS4 with what it can do. The Xbox 360 didn't have Blu-ray and it still did better than the PS3. Microsoft tries to deliver more than just video games.  

lostn
lostn

@Gravity_Slave $15 a month is probably only for people buying it subsidized. MS need to make their money back off you somehow. In the long run you'll end up paying more. Better to save up first.

matman01
matman01

@guitarist1980 These specs are pretty much irrelevant as they are so close as to make no practical difference (see the excellent comparison already done by gamespot). Ultimately, any difference in the gaming capabilities of the two consoles will come down to how easy the game developers find the consoles are to work with and port between. Given that both are adopting an X86 PC like architecture even this difference will be marginal, with a very slight edge to MS as they have the longer history in X86 platforms. Fundamentally it will come down to which company's style you prefer.

guitarist1980
guitarist1980

@hadlee73 No the subsidized deal did not make sense for the xbox one. Becuase most people that buy the xbox one are going to buy xbox live memberships anyway... so if thats the case they would essentially be losing money to any smart person who knows anything about consoles.

matman01
matman01

@charlesdao The 'Kinnect' aspect will be in the box, the same way as the pad controller is, it will just no longer be an optional peripheral. EXACTLY the same way as the equivalent optical motion sensor capability will be in the box with the PS4. Both companies believe that optical motion sensing is now an essential part of the 'living room experience'. See also the newer TVs from Samsung et al.

Vegeta-sama
Vegeta-sama

@Curbdog51 cto be fair the Xbox side is completely and totally for the game and nothing else... all the Live stuff is section off away from the game and attaches through the middle OS

matman01
matman01

@Curbdog51 The PS4 will have just as many non-gaming features as the Xbox one. It is an economic necessity for Sony, just as it is for MS. They cannot afford to pump the huge amounts of  money into the development of these consoles if their market is limited to gamers alone.

guitarist1980
guitarist1980

@Curbdog51 Well the xbox one will feature just as many games as the PS4. But will offer more in terms of other media contents. The PS4 as of now seems to be a slightly better strictly gaming machine. But we are talking a very small difference. So it all depends on what you want. I personally want my gaming console to be a gaming first console but extra features are always good.

guitarist1980
guitarist1980

@Jake518 I would expect the PS4 to be more expensive and to offer less in terms of media content and software. The only thing I see the PS4 possibly out doing Microsoft is with exclusive PS4 games.

brainiac1988
brainiac1988

@ryanPwnZzDoA yes it is time. 360 is outdated. this gen has been stretched out long enough.

dont like the xbox One though.. no buy for me

guitarist1980
guitarist1980

@USNavyTech Windows 8 is great for tablets. Like the surface pro is pretty damn awesome. Its just expensive.. even my apple fanboys get jealous when I pull it out.

Ashmodai69
Ashmodai69

@USNavyTech  

Several issues with your argument :

1. You were talking about the camera, with my phone or laptop i can turn my camera off as i please, kinect must always be on.

2. How lazy are we getting if analog stick is a hassle.

3. I don't want my game console to multitask, it should just play games. That's what my 3000 dollar desktop is for.

And finally 360 has not done better than the PS3, the PS3 has outsold the Xbox even though Xbox released almost a year earlier.

evil_snuggles
evil_snuggles

PS4 has "50% more raw power" in graphics than Xbox One, says report

A detailed hardware comparison by Eurogamer has revealed the differences in the GPU (graphical processor units) between the two systems. (Next-Gen, PS4, Xbox One)

Read full story

DoogyDonDoogy
DoogyDonDoogy

@USNavyTech What?! Who would want a system that could multitask running various apps none of which are related to gaming or games on (wait for it) gaming console? Only an idiot would want a system that's shift and primary focus is do everything but have awesome video games? 


That's you ...dilweed  :p

DoogyDonDoogy
DoogyDonDoogy

@USNavyTech Wow calm down with the fanboy drama. I can do all the things the Xbox One can do via other devices. It's not like they're large and clunky, taking up a lot of space. Plus people are more or less mad about the used game fee thing you dummy. 

l_skipper
l_skipper

@USNavyTech I want JUST video games. If that makes me an idiot - oh well..  :)  I'm not saying a few extra apps is a bad idea, but cmon - after M$ presentation there's only one thing in my head I remember:  a guy waving his hands and saying xbox this and xbox that.  

guitarist1980
guitarist1980

@brainiac1988 except the rumors are that the ps4 will have 4 locked GCN cores. which would in effect make it equal to the xbox one. Of course these are all rumors. But it begs the question why would Sony add the extra horse power and then lock it up.

hadlee73
hadlee73

@guitarist1980 @hadlee73 But this isn't marketed at people who know anything about consoles. This is marketed to the everyday home audience. And why would they lose money? I didn't mention a monetary value so you're probably assuming I'm talking about the same deal as the Xbox 360 subsidy, which would be a bit ridiculous if they did that.

mattress805
mattress805

Yeah, except nine of the 15 supposed games being announced at E3 are probably going to be Kinect games

ryanPwnZzDoA
ryanPwnZzDoA

@Moonco p.s to all hostile people-  i'm not saying its a bad system i'm just talking about the style!



guitarist1980
guitarist1980

@Ashmodai69 @USNavyTech Actually the 360 took back the crown but regardless it did release a year earlier and how many of those were to faulty machines is a question.

Stedmister
Stedmister

@evil_snuggles That is true but the DDR is designed to run the whole system in the XBOX, and it's has a better advantage at that, hence why there no GDDR on motherboards in pc, GDDR also runs hotter than normal DDR

USNavyTech
USNavyTech

@vader501st @USNavyTech 

I can be very serious. I would rather lose a little in the graphics department and gain more features then to just have a console that can just play games. It would be like having a cell phone that can only call people. Nobody really knows what Microsoft is going to do until the actual console is released and vice versa nobody knows what Sony is going to do either. I mean everyone thought the new Xbox was going to be called the 720 or Infinity so it just goes to show nobody know what Microsoft is going to do until Microsoft does it the same applies to Sony. Microsoft has gone back on things they have said before as has Sony. Right now based on what I've seen The Xbox One is the superior system. Having great hardware doesn't mean anything if you have crappy software. Microsoft has shown more useful features than Sony has heck we don't even know what the PS4 looks like. But I won't even buy my new system until next March when there will be a clear winner. But I think The Xbox One will out do the PS4 if not in Hardware then definitely in Software and features. People get this Fanboy mentality and forget to look at what's right in front of their face and that's exactly where The Xbox One is while the PS4 is yet to be seen. I'm all about what is the best and right now it's The Xbox One.

Vegeta-sama
Vegeta-sama

@guitarist1980 that's so they get much higher yields... Microsoft may have don't much the same... also Sony did something along these line with the PS4... 8spus 2 were locked for yeilds

evil_snuggles
evil_snuggles

PS4 has "50% more raw power" in graphics than Xbox One, says report

A detailed hardware comparison by Eurogamer has revealed the differences in the GPU (graphical processor units) between the two systems. (Next-Gen, PS4, Xbox One)

Read full story

L

Derock161
Derock161

@Stedmister @DoogyDonDoogy @USNavyTech To be honest with you I have a Xbox 360 and I have to admit ps3 has a much better library. I wish I got ps3 over my 360. Nintendo still has the best exclusives though

DoogyDonDoogy
DoogyDonDoogy

@USNavyTech How can you say that when there's still so much unknown. Plus what MS has the better exclusives nope! Look through the PS3's catalog and you'll find so damn good games. S

l_skipper
l_skipper

@USNavyTech Fanboy mentality ?  I own original XBOX with 30+ games on it, I own Xbox 360 with 20+ games on it. The next gen Xbox  -WAS-  my choice without even thinking about it, but it definitely is NOT at the moment.

vader501st
vader501st

@USNavyTech Since we're talking about software, we've seen how much of that Microsoft showed during their conference, with no gameplay footage whatsoever. For a games console, that does not bode well. Not that Sony is the great saviour either, but at least they catered to most crowds by showing different kinds of games during their conference. For a platform that is focused on gaming, something the Xbox One is supposed to be, it's nice to have some actual gameplay footage for a change. For their sake, I hope they bring out the big guns on E3.