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

4.5
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.

Posted:
Related Forum: Xbox Forum

Source: http://www.vg247.com/2013/06/24/xbox-one-at-499-the-price-is-too-high-says-economist/

Related Articles

Comments

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

If you would like to post a comment please signin to your account or register for an account.

KyzuroPosted:

It's all about the money for Microsoft.

ThatGTRPosted:

$499 thats a very high price for something thats going to do the same as the last console

AustraliansPosted:

Katsumi
Busselton
Wavelength The price really isn't too high. People are acting like 500$ is a lot of money.


It is a lot of money, but it isn't for those stupid little 10-13 year old kids who don't have a job and need there parents to buy it for them, i hate those spoiled little kids :@ I can make $500 in maybe 2 weeks with my schedule at work.


The $500 dollars also needs to be spent on rent, food bills, taxes etc.


I got like $7000 In my life savings at the moment, all of it's being used for a new apartment I'm gonna share with a friend, but i definitely lend money to my parents if they need it, as long as I live with them I chip in :)

ExoticWolfsPosted:

imgur I really don't see this as being too high, it seems reasonable to me...


And it is reasonable because the kinect is in there also. I think they could lower it maybe $50 and still get a bit of profit. Or they could just remove the kinect and add an original mic in the at a cost of $400. And just have the kinect optional, so whoever wants it, can buy it.

KatsumiPosted:

Busselton
Wavelength The price really isn't too high. People are acting like 500$ is a lot of money.


It is a lot of money, but it isn't for those stupid little 10-13 year old kids who don't have a job and need there parents to buy it for them, i hate those spoiled little kids :@ I can make $500 in maybe 2 weeks with my schedule at work.


The $500 dollars also needs to be spent on rent, food bills, taxes etc.

KatsumiPosted:

SwagDaddyYolo
Wavelength The price really isn't too high. People are acting like 500$ is a lot of money.


Are you kidding me? 100 dollars is a lot of money to me.


It really depends on where you live and your financial situation. $100 is a fair bit of money to me also but for some people with a higher class background it isn't much money at all

neboPosted:

Wavelength The price really isn't too high. People are acting like 500$ is a lot of money.


Are you kidding me? 100 dollars is a lot of money to me.

AustraliansPosted:

Wavelength The price really isn't too high. People are acting like 500$ is a lot of money.


It is a lot of money, but it isn't for those stupid little 10-13 year old kids who don't have a job and need there parents to buy it for them, i hate those spoiled little kids :@ I can make $500 in maybe 2 weeks with my schedule at work.

AustraliansPosted:

imgur I really don't see this as being too high, it seems reasonable to me...


For the things that Microsoft have bundled? A kinnect in it and 2 free games a month with good discounts on features. I think it's a perfect price :)

BribePosted:

Wavelength The price really isn't too high. People are acting like 500$ is a lot of money.


And you act as if it grows on trees. Keep in mind not everyone can shit out 500$ as if it were nothing.


Latest Downloads

Latest Tutorials