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.


Forza Motorsport 5

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.

No Caption Provided

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.

Got a news tip or want to contact us directly? Email

  •   View Comments (0)
    Join the conversation
    There are no comments about this story