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: Jun 29, 2013 7:50 pm
Related Forum: Xbox Forum

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

Comments

KatsumiPosted: Tue. Jul 09, 2013

lel
imgur I don't mind the price, it works for me.

I mean, 100 dollars isn't a LOT anymore but it's still money

It still matters yet it's not enough to put someone off buying a console in my opinion

TaigaAisakaPosted: Tue. Jul 09, 2013

lel
BDB
ShadowBoltDashie
Pinkie The price is too high.. lol

Not really, if you think about it, you have spent more on your Xbox 360 or PS3 with games and everything for it. $499 for the Xbox One is way cheaper than I originally expected.

Same here, I thought it was going to cost around 600-1000 dollars.

If it was 1k dollars, I doubt anybody would buy it

If it was a $1,000 I would go out and build a gaming PC. No console is worth $1,000.

PlusnetPosted: Tue. Jul 09, 2013

imgur I don't mind the price, it works for me.

I still think it's a little too overpriced. $400 would be fair.

neboPosted: Mon. Jul 08, 2013

imgur I don't mind the price, it works for me.

I mean, 100 dollars isn't a LOT anymore but it's still money

imgurPosted: Mon. Jul 08, 2013

I don't mind the price, it works for me.

imgurPosted: Mon. Jul 08, 2013

lel
BDB
ShadowBoltDashie
Pinkie The price is too high.. lol

Not really, if you think about it, you have spent more on your Xbox 360 or PS3 with games and everything for it. $499 for the Xbox One is way cheaper than I originally expected.

Same here, I thought it was going to cost around 600-1000 dollars.

If it was 1k dollars, I doubt anybody would buy it

That would've been too high.

neboPosted: Mon. Jul 08, 2013

BDB
ShadowBoltDashie
Pinkie The price is too high.. lol

Not really, if you think about it, you have spent more on your Xbox 360 or PS3 with games and everything for it. $499 for the Xbox One is way cheaper than I originally expected.

Same here, I thought it was going to cost around 600-1000 dollars.

If it was 1k dollars, I doubt anybody would buy it

MentalistPosted: Mon. Jul 08, 2013

I'm actually quite suprised with this price, I'm fine with it. I expected way more :Dd

MentalistPosted: Mon. Jul 08, 2013

ShadowBoltDashie
Pinkie The price is too high.. lol

Not really, if you think about it, you have spent more on your Xbox 360 or PS3 with games and everything for it. $499 for the Xbox One is way cheaper than I originally expected.

Same here, I thought it was going to cost around 600-1000 dollars.

TaigaAisakaPosted: Sun. Jul 07, 2013

Pinkie The price is too high.. lol

Not really, if you think about it, you have spent more on your Xbox 360 or PS3 with games and everything for it. $499 for the Xbox One is way cheaper than I originally expected.

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