Xbox One at $499: “the price is too high”, says economist
Mohammed has worked as a pricing analyst for some 21 years and is author of a book called The Art of Pricing. If there’s one thing he appears to know, it’s how to price a product successfully.
Speaking with Bloomberg TV, Mohammed said of Xbox One, “You want to get that console in consumers’ hands, and then where you really make the money is off of the games.
“So it was really surprising that they charged such a premium, especially when they had a lot of negatives…like the very restrictive DRM, which they did retract from. One of the key things is that they really listened to their consumers and they did backtrack and they reduced the price, but I still think the price is too high. So it’s still a $100 premium.”
Despite the $499 asking price, Microsoft’s Don Mattrick has recently suggested that Xbox One over-delivers on value, and offers thousands of dollars worth of content and features. We’re still not sure what ‘over-delivering on value’ means exactly.
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Related Forum: Xbox Forum
Source: http://www.vg247.com/2013/06/24/xbox-one-at-499-the-price-is-too-high-says-economist/
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Comments
ZymicPosted:
BLACKMAMBACV Miscosoft are just greedy bastards I'm moving to the ps4
The PS4 will just be the same amount idiot. You have to be a retard to even get PS4.
DLTPosted:
AwesomeSauce69 Thats too high? Really? Have you seen the UK price? In dollars its 654 dollars, as well as the 60 dollar xbox live. Which is 714 dollars. Now that is too high.
The US price doesn't include taxes apparently because every state has different taxes. The UK price includes VAT and all the other taxes we have.
dmofPosted:
It is a lot of money for what it is. With $500 you're better building a PC and upgrading it.
TaigaAisakaPosted:
Anticipate Lol, the price is too high I could get a decent gaming pc build for that amount. TBH I think xbox one will fail this year.
It's doing pretty good so far. A lot of people have pre-ordered the Xbox One and the PS4. I know the PS4 is $100 cheaper but still both will do pretty amazing this year.
IntPosted:
Lol, the price is too high I could get a decent gaming pc build for that amount. TBH I think xbox one will fail this year.
TaigaAisakaPosted:
ColorsAwesomeSauce69 Thats too high? Really? Have you seen the UK price? In dollars its 654 dollars, as well as the 60 dollar xbox live. Which is 714 dollars. Now that is too high.
I'd pay 1000$ doesn't make a difference to me
A $1000 for a gaming console? I'm sorry but I'd rather buy a gaming PC with that money. It's not that I don't have the money for that, $1,000 just doesn't seem worth it for a console.
AustraliansPosted:
ColorsAwesomeSauce69 Thats too high? Really? Have you seen the UK price? In dollars its 654 dollars, as well as the 60 dollar xbox live. Which is 714 dollars. Now that is too high.
I'd pay 1000$ doesn't make a difference to me
I hope you aren't one of those guys whose parents buy all there stuff, i had to earn everything for myself the moment i got a deep voice lol, even before that when i was a squeaker.
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