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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FrogPosted:

I really don't think the price is too bad, it could be much higher for all that is included!

KatsumiPosted:

RaheemSterling_31 They should make the prices equal

It's not like the Xbox is way better than the PS4


The main reason that the Xbox One is $100 more than the PS4 is because the Kinect is included.

LWRPosted:

They should make the prices equal

It's not like the Xbox is way better than the PS4

KatsumiPosted:

Jakeston Over-delivers on value my bum. I want a GAMING CONSOLE. Not a family funbox. Haha. The PS4 isn't even worth what they're selling it for.


The PS4 has a reasonable price in my opinion. I don't know why people think it's too high

SahvidgePosted:

Over-delivers on value my bum. I want a GAMING CONSOLE. Not a family funbox. Haha. The PS4 isn't even worth what they're selling it for.

LWRPosted:

I wouldn't pay anything more than 500

SorceryPosted:

Flitter All of these profits will come together and help Microsoft develop and improve the Xbox Live service, it tends to be that the more money put into a project the better the outcome.


That's just a petty excuse, at the end of the day paying the equivalent of $650 if you live in the UK is simply not acceptable.

kal45Posted:

Human
I-DA-KING How do some people think its too high?

A console made 8 years ago is still, $299


That's because I like men, anyways things such as the Xbox 360 and PS3 aren't like the Atari, they won't go out of date for years because of the high quality gameplay and graphics on them. There can't be many more improvements past the Xbox 360 because there isn't much new to add, apart from better graphics and power features.


You obviously have no idea what you are talking about. The current pc's on the market are have 8x more power than the ps3 and xbox 360. It has more power in ram, gpu, cpu,motherboard. The reason, they cost so much is that they bought custom gpu's and cpu's that they have to manufacturer, which then significantly raises the price and they still make a 100 dollar profit on the console. With the ps3 the extra 100 dollars is in the blue ray player

HumanPosted:

I-DA-KING How do some people think its too high?

A console made 8 years ago is still, $299


That's because things such as the Xbox 360 and PS3 aren't like the Atari, they won't go out of date for years because of the high quality gameplay and graphics on them. There can't be many more improvements past the Xbox 360 because there isn't much new to add, apart from better graphics and power features.

HumanPosted:

So it's 400 then 40 for games... you could get a PS4 and a game or two for the same price and similar if not better functionality


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