Xbox One at $499: “the price is too high”, says economist

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Xbox One will cost $499 / £429 at launch in November, but the cost of entry is too high, economist and author Rafi Mohammed has cautioned. He has stressed that a low console cost would result in more players investing in Xbox One games in a new interview.


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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"Xbox One at $499: “the price is too high”, says economist" :: Login/Create an Account :: 221 comments

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DawPosted:

Without Kinect it would be 400 .

ExoticWolfsPosted:

With the kinect in there, I think the price is fine, but they could lower it $50, with the kinect. I also think they should just remove the kinect and have it priced at $400, but with the cheap little mic. They will still make tons of profit and get more buyers.

ObiwonPosted:

I agree it's to much money to me at release....

byLeonPosted:

It is too high for some people sony did the right thing i will be buying both but most people won't have that option because of the price point. all microsoft has to do is make a console without the kinect sensor and sony and ms would be even.

AlmightyHazardPosted:

Just get rid of the kinect!

bigchukkaPosted:

You know we can just wait until there is a version that comes without the kinect. I don't see them charging full price still 3 months in.

LaprasPosted:

_Kevin_ Obviously. You don't need an economist to see that. The Kinect Krap being removed could make it less expensive.


thats also where microsoft went wrong, they literally built the xbone around kinect, removing it would **** them over

_Kevin_Posted:

Obviously. You don't need an economist to see that. The Kinect Krap being removed could make it less expensive.

S14Posted:

All they have to do is take the Kinect out.

LaprasPosted:

well microsoft is convinced that 499.99$ is the biggest steal for consumers even in todays economy, friggin retards, but then again, the ps4 would of been the same price if it had included the ps eye.


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