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.

Posted:
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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KatsumiPosted:

-Raw
Ing Its $499, but it's 429 how does that work?


Its the same ******** everywhere its $652.64 and in rest of Europe $650.95.

Also next gen games will be roughly $84.62 in Europe also.


There sure is a pretty big difference in prices between countries. My best guess is due to trade taxes or something along those lines

-RawPosted:

Ing Its $499, but it's 429 how does that work?


Its the same bullshit everywhere its $652.64 and in rest of Europe $650.95.

Also next gen games will be roughly $84.62 in Europe also.

Davi_J_CampbellPosted:

higuybye
DLT
Ing Its $499, but it's 429 how does that work?


I believe it's because of taxes in the UK which bumps the price up. Apparently the US cost doesn't include taxes because every state has different taxes.


No I think they use a pound which is worth $0.52 more than a american dollar.


No British money (GBP) is worth less than than the pound, for every 1 dollar its 0.66 pounds. The price rise is because of VAT which is 20% which america doesn't have and therefore everything is much cheaper

AustraliansPosted:

higuybye
DLT
Ing Its $499, but it's 429 how does that work?


I believe it's because of taxes in the UK which bumps the price up. Apparently the US cost doesn't include taxes because every state has different taxes.


No I think they use a pound which is worth $0.52 more than a american dollar.


I think 429 pounds is like $600USD i think, like DLT said, it's probably taxes.

higuybyePosted:

DLT
Ing Its $499, but it's 429 how does that work?


I believe it's because of taxes in the UK which bumps the price up. Apparently the US cost doesn't include taxes because every state has different taxes.


No I think they use a pound which is worth $0.52 more than a american dollar.

DLTPosted:

Ing Its $499, but it's 429 how does that work?


I believe it's because of taxes in the UK which bumps the price up. Apparently the US cost doesn't include taxes because every state has different taxes.

YurPosted:

Its $499, but it's 429 how does that work?

AustraliansPosted:

xSTaTiCBLuEx
wok
Katsumi
Busselton
wok
Busselton
Katsumi
wok
Busselton
iBullet It's $599 in Australia which equals out to around the same in USD, we're getting ripped off.


Apparently if you work at EB games you get 20% off of the Xbox One, so either my mate is gonna order one on his behalf with my money or I'm just gonna get a job there xD


Didn't know that, might have to look into someone who works there haha ;)


Australia is always getting ripped off when it comes to Video Games and Consoles. I guess we just have to live with it


Katsumi, I had no idea you lived in Australia haha, thats really cool xD But thats the thing i guess, maybe Microsoft still looks at us as all convicts so there ripping us off, cos after all our ancestors did steal a loaf of bread lol


lol, or they just feel they can get more money out of you for some reason


They've already banned Saints Row 4 anf ripping us off with the Xbox One, i think Julia Gillard is involved with this, I miss old Rudd lol


Hopefully the Government can acknowledge that the gaming Industry is big in Australia. The government banning games is not on. As for the increased pricing on the Xbox One it's more a decision by EB Games to set the price so high, i'm not sure if it has much to do with the government.

Off topic : Kevin Rudd was re-instated as the Prime Minister of Australia a few days ago


Hopefully, because if they ban saints row, which isn't that bad, they're gonna be banning alot more games.


You **** idiot, you live in Australia and didn't know that guy got re-instated as president? (Do you live in a cave and jsut game all day long?) xD I mean, everyone else in the world heard about it. **** hell


Australia just switched to digital TV you cretin. I'm capped so TTG is the only website i really go on. And Australia has a prime minister by the way, don't try to call me an unfaithful citizen to my country. I told all my mates and they had no idea either, so shut your mouth and learn about governments of the world.

xSTaTiCBLuExPosted:

I just want them to adress the issue that $499 IS NOT 429. Batsards trying to rip-off the Europeans yet again. Suh an utter joke, Mircosoft is almost being disrespectful because they are stupid *****. PS4 seems to be claling anyone with 2 brain cells :)

AustraliansPosted:

Katsumi
Busselton
wok
Busselton
Katsumi
wok
Busselton
iBullet It's $599 in Australia which equals out to around the same in USD, we're getting ripped off.


Apparently if you work at EB games you get 20% off of the Xbox One, so either my mate is gonna order one on his behalf with my money or I'm just gonna get a job there xD


Didn't know that, might have to look into someone who works there haha ;)


Australia is always getting ripped off when it comes to Video Games and Consoles. I guess we just have to live with it


Katsumi, I had no idea you lived in Australia haha, thats really cool xD But thats the thing i guess, maybe Microsoft still looks at us as all convicts so there ripping us off, cos after all our ancestors did steal a loaf of bread lol


lol, or they just feel they can get more money out of you for some reason


They've already banned Saints Row 4 anf ripping us off with the Xbox One, i think Julia Gillard is involved with this, I miss old Rudd lol


Hopefully the Government can acknowledge that the gaming Industry is big in Australia. The government banning games is not on. As for the increased pricing on the Xbox One it's more a decision by EB Games to set the price so high, i'm not sure if it has much to do with the government.

Off topic : Kevin Rudd was re-instated as the Prime Minister of Australia a few days ago


Wow, i feel so embarrassed right now haha, the digital TV hasn't kicked in over here in the south west so I've been a caveman for the past few days haha, thanks for telling me lol.

On topic lol: They are already banning games because of violence but they cant at least try to ban drug import/export or even keep it out of young committees, the drugs in Australia that are used by teens are terrible D:, just disgraceful. oh well, hopefully this anarchy will learn that people like playing video games and keep us having fun lol :D


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