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/

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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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FantasticPosted:

It will be $650 in NZ and we won't even be able to use half the features.

EqualisePosted:

I dont mind the price to be honest

WokzePosted:

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.

KatsumiPosted:

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

AustraliansPosted:

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

WokzePosted:

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

AustraliansPosted:

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

WokzePosted:

Busselton
wok
-Trippyy at that kind of price there better be some free things involved


You get a free kinect with the console, and they are releasing two free games a month on 360.


People will still argue over it bro, such a good deal that PS4 players don't understand. At least someones shining some light on the situation :)


Yup, if you care that much you can buy a $5-$15 mic at game or whatever.

WokzePosted:

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


Ah, i live in the uk so im normally okay, but we're being ripped of too, its 420 pounds, even though $500 is 316 pounds, so im ordering it from the us.

KatsumiPosted:

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


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