Microsoft: Subscription model 'pivotal' to Xbox business
Earlier this year Microsoft began offering an Xbox 360, Kinect and an Xbox Live Gold membership for an up front cost of $99, with subsequent monthly payments of $14.99 for the duration of a two year contract.
Although initially exclusive to Microsoft's own US stores, in June the trial program was extended to Best Buy and select GameStop outlets. In the coming weeks it will be rolled out to Wal-Mart, Toys R Us and all GameStop stores alongside new Xbox 360 hardware deals.
Speaking to the Wall Street Journal, Barlow indicated that the program has been a success and will be adopted again for future product launches.
"We wanted to see if we would get sustained consumer excitement and willingness from partners to get this in retail," he said. "This type of program is pivotal to our business."
In July, Xbox Europe executive Chris Lewis said the platform holder was looking at the possibility of launching a subscription model for Xbox outside of the States.
That same month, Wedbush Morgan Securities analyst Michael Pachter speculated that Microsoft's next console will go on sale for $99 with a monthly TV subscription fee.
"Console will have to be multiple purpose devices" he said. "The Xbox 720, this is my prediction, is going to be your television as well [as your game console]. You'll be able to tune into television through it.
"I'm pretty confident that in the US Microsoft is going to partner with a cable TV provider, so I expect that the console will be priced like a smart phone. I expect you'll be paying $99 for the console with a cable TV subscription."
Posted:
Related Forum: Xbox Forum
Source: http://www.computerandvideogames.com/374233/microsoft-subscription-model-pivotal-to-xbox-business/
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Comments
AlbericiPosted:
Oasis Way back when, which stupid 'think tank' suggested the tv idea. I've never thought 'hmm I wish I could watch that show right now' I have tivo for that reason! Game system...stick to what you were made for.
I know but didnt that idea fail? Didnt they take it out.
Da_BombPosted:
Say I already have a cable provider why would i want my xbox to be one? I really hope they are not gonna force some bs like that just to get more money down the line. I just want upgraded specs new games and the standard gold membership nothing more.
You will still probably be able to get that. But like it said in the article, it will be priced like smartphones are. Get one on contract for 100 dollars, or get one without contract for 700 or maybe even more.
SayPosted:
I already have a cable provider why would i want my xbox to be one? I really hope they are not gonna force some bs like that just to get more money down the line. I just want upgraded specs new games and the standard gold membership nothing more.
OrigamoPosted:
I think it is a bad idea making the Xbox Live subscription compulsory, because most families don't want to use Xbox Live.
OasisPosted:
Way back when, which stupid 'think tank' suggested the tv idea. I've never thought 'hmm I wish I could watch that show right now' I have tivo for that reason! Game system...stick to what you were made for.
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