Microsoft: Xbox One will revolutionize the living room

In defending $500 price point, chief marketing officer Yusuf Mehdi says Xbox One stands to be a revolutionary product for the living room.

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The Xbox One will revolutionize the living room entertainment experience in a similar way to how smartphones changed the cellphone market, according Microsoft chief marketing and strategy officer Yusuf Mehdi.

"If you harken back six years ago when the first smartphone came out, and how that just changed cell phones forever, and tablets have changed personal computing, I believe the Xbox One will do that for the living room," Mehdi told Bloomberg TV.

"This is an amazing time. This is the first time the living room is going to become personalized and we're going to deliver a next-generation experience for all of entertainment: games and television. There's no one who does that today," he added.

Mehdi's comments came in response to a question about Microsoft's decision to price the Xbox One at $500, a full $100 above the PlayStation 4 from competitor Sony. He explained that the "breakthrough" nature of the Xbox One justifies its price tag.

"For the first time you're going to get really a breakthrough experience that changes the way you use TV," Mehdi said. "And at the price we're delivering there, I think, relative to say your third tablet, [the $500 Xbox One], I think is a really attractive opportunity."

Apple's latest tablet, the iPad Air, starts at $500.

Microsoft has marketed the Xbox One as an all-in-one entertainment device capable of not only playing the latest games, but also becoming a hub for all living room media. Unlike the PS4, the Xbox One allows cable subscribers to patch their cable TV feed through the console.

Microsoft director of product planning Albert Penello previously defended the Xbox One's price point by saying the system is simply superior to the competition.

"I think we do more. I think our games are better. I think as people start to experience Kinect and see what it can do using voice, I think that's better," Penello said at the time. "I think the ability to have an all-in-one system where you can plug in the TV, that's better. I think we'll have a better online service. I just believe that we're going to have a better system."

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