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.

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Eddie Makuch

Eddie Makuch is a news editor at GameSpot, and would like to see the Whalers return to Hartford.
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283 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.  

obsequies
obsequies

it would have to be half the normal price for it to actually make sense and even then its bad for the future.

Warlockofhell
Warlockofhell

It's the key for non-gamers or occasional gamers of this world... If you can have a all-in-one gaming console, Kinect games, blu ray player, Stream video-movie and tv device, music streaming, Skype, workout station (for some), and more for like 200-300$ plus 2 years contract, It's obvious people will sing... Just see how most people is ready to pay 50 to 100$ bucks per month for their smartphone... 15$ each month is nothing!

For me, this is a "smart" way to attract consumer to this console. 500$-600$ is way too much for occasionnal gamers!

Still waiting for more details on the games to decide if i'm waiting for a lower price...

Geogyf
Geogyf

xbox one estimating price

1) 500 dollars

2) 300 dollars + XBOX Live for 2 years, meaning pay per month (total cost 540 dollars)

called it.

TerminalError
TerminalError

The only key to success with this is doing a complete U turn...

Toysoldier34
Toysoldier34

They will need to keep the price really low to try and pass it off for multimedia. Someone buying it for the media side will care little for the games and won't spend the extra $100-$200 over another device.

EDFXNights
EDFXNights

Give it to me and i won't even take it... my 360 is gathering dust... 

Unless you pay me and i may consider it

rdwolf260
rdwolf260

MicroShaft doesn't have to worry about subsidizing the cost of their console. Even if they sold it at a loss like PS3 did at the beginning, how much can they loose? If each one sells at $100 loss at the beginning, maybe that's why they made the reveal into such a disaster. They don't want to sell 10 million consoles out the gate, that means they'll loose $1 billion. No, they're pacing themselves and shooting for only 10,000 units sold in first year, because that means they only loose $1 million instead. Smart thinking, now I see what their strategy was all along.

JRLennis
JRLennis

For a box that does as many things as the X-Box One, I don't see how they could price it LESS than $500 at launch.  That, I think, is what has so many people concerned.  A dedicated next-gen game console could be priced less and make money.  But no.  Microsoft has to take control of the living room, and that has been their plan from the inception of the original X-Box.  But that is a huge gamble in an era of unprecedented change for the entertainment industry.  I've heard some analysts say that the days of the big cable companies are coming to an end, and hearing their arguments it's hard to disagree.  People increasingly want value and choice, and cable really doesn't give us that - forcing hundreds of channels down our throats that we'll never watch.  It's entirely possible that X-Box One will be a versatile enough platform to adapt to this change, and it's also possible that Microsoft is oblivious to the possibility of a forest fire and the XO won't be equipped to deal with it.  Certainly, subsidizing the XO through the cable companies would be a perilous course if they chose to go that way.

RedLegZeff
RedLegZeff

Hmm, last couple generations I've waited a year. See the 2nd version of the hardware and the price drop, and pick which one is stronger, with better exclusives, community etc. Waiting a year certainly wouldn't have hurt anyone considering the wii u.

Dangerous231
Dangerous231

more like 90 million xbox one

90 million ps4

70 million wii u

then softwere

ryanPwnZzDoA
ryanPwnZzDoA

E3 is the deciding factor on whether or i go with PS4 or Xbox One and so far showing the possibility of having another tv box in the same room has not impressed me, and graphics aren't as big in this generation as they were in last gen. Wii U has already showed us what xbox has offered!!!!! and i cant wait to see what ps4 offers and i hope it is not what wii u and xbox are going to offer. because whats the point in switching when wii u has the same capabilities as the other next gen systems, now even though the other systems have more power there wont be a GIGANTIC JUMP in graphics, and I dont care about speed when every system ever made has shown they can take every game made for it! and all these systems have a great amount of space. So show me something that amazes and i will be a proud consumer of the greater system!!!!!

furrynic
furrynic

I'm sticking with the $400 to $500 bucks range for the 2 deferent versions of the console, that I think they will have at launch..

Barrakas21
Barrakas21

The key for sucess is not to commit financial suicide! haha

marcrnsm
marcrnsm

We know there is some confusion around used games on Xbox One and wanted to provide a bit of clarification on exactly what we've confirmed. While there have been many potential scenarios discussed, we have only confirmed that we designed Xbox One to enable our customers to trade in and resell games at retail. Beyond that, we have not confirmed any specific scenarios.

Another piece of clarification around playing games at a friend's house -- should you choose to play your game at your friend's house, there is no fee to play that game while you are signed in to your profile.

Do YOUR work when commenting on details, as usual most of you DON'T know what your talking about as usual.

You can trade or sell ANY game, the game does NOT have to be installed to play online, you Don't have to login every 24 hours, the console must be connected via internet where IT does a system check and response every 24 hours. Nothing like retards talking crap without the research.

ryanPwnZzDoA
ryanPwnZzDoA

looks like ps4 and wii u are gonna take this generation!

ryanPwnZzDoA
ryanPwnZzDoA

e3 is the deciding factor between Xbox one success Or Death.. enough said 

ohjtbehaaave
ohjtbehaaave

To be honest the price would not be a big factor if they were catering to core gamers.  Many would feel better paying for a system that's BC and having the ability to transfer all your LIVE arcade games stuff to the new system.  Paying for something and knowing not only are you getting the Next Gen games... but can still play everything you already payed for and own is huge to many.  Knowing we get none of that BC goodness.... but instead this Social Media and TV integration Bull Shit that no REAL gamer gives 2 shits about... is the major turnoff to forking over $500 bucks or so.  Gamers are willing to pay for a console that's about GAMES and a cool gaming experience.... but not for this gimmicky TV integration and Socila Media crap.  We wanted a cooler gaming experience... and we got voice recognition to turn on the Oprah channel instead.  Who is in charge of the decisions going into these new systems.  I passed on the Wii U for now... but at least Nintendo should get credit for making GAMING as their #1 priority.  BC with Wii btw.

Sniper
Sniper

The price of a good or service helps determine its success in the marketplace? Profound. Stop saying "key". Everything is important.

glhx2112
glhx2112

Lot's of Herp and Derp going on here. I'll wait until I see what the official pricing schemes are going to be before I flip out and go OMGWTFBBQ.

starjay009
starjay009

A lot of stupid comments here with regards to console pricing. Yet, people are OKAY to buy a big fat PC GPU costing a fortune and grin as if there is no tomorrow. I am prepared to pay 500$ and even 600$ for these consoles PROVIDED they have quality games. This is why I can't wait for E3. 

Homerj
Homerj

They should cost the console at $5000 US and XBL at $500 per month.  I mean, hey, go for broke, its not like its going to hurt their sales any more than they already have.  At this point, it would have been better if they had simply "no commented" until lauch day...at least they would have gotten a few suckers to bite.

atreyu27
atreyu27

Wait for E3. Everyone is going bonkers from one showing of the console. Patience.

HonorOfGod
HonorOfGod

-_____- thats it.. its illuminati cam in every house.

Darknight765
Darknight765

I love how people are always so against change.  I hear all of you complaining about how MS has forsaken gamers by showing you that their system works and telling you that they have 15 exclusive titles for it.  Sony on the other hand hides behind their controller with a Wii U like gimmick and a whole bunch of third party titles running on a PC behind stage and you dumb asses can't stop sucking their dicks.  I love to read how most of you complain that the "One" has "unnecessary" features.  Cars use to be unnecessary  same thing with cell phones, internet, cable modems, on demand content, I could do this all day.  Lets look at the facts: 1. Xbox one is a working system with 15 exclusive titles, full live t.v. functions, ships with kinect, and will have a lower starting price point then Xbox 360.  Sony has a controller with a touch screen and....... wait, we don't know anything about the PS4.  Other complaining points: Backwards compatible- MS-no we won't do it, Sony- we have a plan but have no idea when we can make it work.  Used games- MS here is what we plan on doing, Sony- well ummm ask the developers.  Everything that you are complaining about Sony is just letting MS test the waters and is going to follow suit with whatever they can get away with.  Open your eyes, the only difference between the 2 is one is telling you that they are going to fuck you in the ass and are giving you a chance to buy lube.   

bledsoe45sbc
bledsoe45sbc

if ms can get this priced at below $400 , i'll buy it just for the 1st party games

Dannystaples14
Dannystaples14

I would find it difficult the purchase this console at all if it was more expensive than the previous generation. At least if it the same or cheaper price we know it isn't all of the TV and kinect crap making it more expensive.

awhite27
awhite27

Ms your key to success is making a fucking console and not a all in one entertainment package with fees.

thekazumalord
thekazumalord

Scrapping the current xbox One ideas and and make a the console focus on games instead of TV TV TV is the key to success.. which is why Sony has the upper hand for now.. basically do what Sony is doing, focus mainly on games and then then Microsucks might do ok in the far future... maybe.

sacatash
sacatash

This thing is going to be expensive with all those 'unnecessary' features for a gaming console.  I really believe it will be not less than $450.00 in comparison to the Wii Deluxe which is $350.00 this thing has a 500 Gb hard drive, Kinect 2.0 sensor, a blue ray disk and better hardware.