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.

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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.

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"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.

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