Microsoft needs to “win the value argument,” over $499 Xbox One

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Activision Publishing boss Eric Hirshberg isn’t too worried over Xbox One’s $499 price point, but he does feel that the firm needs to prove why it’s worth the price.

Speaking with GI International, Hirshberg said it’s up to Microsoft to “win the value argument,” but for now, the “win goes” to Sony for it’s lower price.

“If you do a focus group of a gazillion people and you show them two prices for two competitive products, 100% always prefer the lower price,” he said. “I think from a first impression standpoint the win goes to Sony, at least as it relates to pricing. Microsoft is going to have to win the hearts and minds and convince people that the higher price point is worth it, and that it provides really meaningful capabilities that will be meaningful to consumers. And it’s a long game, so I am sure that’s what they intend on trying to do.

“I feel they have to show why that’s a good thing and why it’s worth the premium and deserves inclusion and why it’s something that gamers are going to come to really value and appreciate.

“It’s going to be a fun battle to watch, but I think they definitely have to win hearts and minds in terms of the value of it.”

Xbox One and PS4 are both due sometime in November.

Posted:
Related Forum: Xbox Forum

Source: http://www.vg247.com/2013/06/26/microsoft-needs-to-win-the-value-argument-over-499-xbox-one/

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"Microsoft needs to “win the value argument,” over $499 Xbox One" :: Login/Create an Account :: 77 comments

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MentalistPosted:

Woobie Yeah I mean 500$ is great for the people who will use it as an all in one entertainment system but not for the people who just want to play Halo and talk to friends.


People like you and me, I only game on my XBOX. I don't need all that extra stuff!

MentalistPosted:

Give some free xbox live and a headset and maybe a charging kit and that would be a good start ;)

SempiternalPosted:

Establish
kingcee i think they could care less they probably think people buy 600$ i phones they can afford this


Because most people actually need smartphones. Plus, on contract, most people end up buying them for $200 or less.


You still pay for the full phone on contract. You generally pay a small fee at the start, then pay for the rest of the phone, along with network usage over the time of the contract.

WageringPosted:

Maybe they should try including a real communication device instead of Kinect mics...

generalhunterPosted:

Give a 12 month Gold / Headset/ Play&Charge kit and it will solve it

EstablishPosted:

kingcee i think they could care less they probably think people buy 600$ i phones they can afford this


Because most people actually need smartphones. Plus, on contract, most people end up buying them for $200 or less.

SwiftPosted:

So why did they not list anything to give the people a reason to buy the Xbox.

WoobiePosted:

Yeah I mean 500$ is great for the people who will use it as an all in one entertainment system but not for the people who just want to play Halo and talk to friends.

MTDPosted:

I agree with them, consumers will realize you'll be getting more if you pay more.

slapshot101Posted:

I think that it is totally true at first glance people will buy the cheaper product, we will have to see how exactly Microsoft plans to market this in a way that makes their product worth the money.


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