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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JamesPosted:

The price is too high.. lol

TaigaAisakaPosted:

BDB
Reeve
BDB
Reeve Thats a little pricey, but im sure people will still buy them.


Yep, wouldn't you buy it? I am :) Looks awesome whatever the price is.


yes i would, actually i am lol :)


Same here, I'm buying it whatever the price is :D




BDB I knew it, the price is too high! :D I would love to see the console at $300-400


You kinda contradicted yourself there xD $499 is no problem for me and I'm sure it's nothing to most people either. At least both consoles aren't $600+

MentalistPosted:

I knew it, the price is too high! :D I would love to see the console at $300-400

MentalistPosted:

Reeve
BDB
Reeve Thats a little pricey, but im sure people will still buy them.


Yep, wouldn't you buy it? I am :) Looks awesome whatever the price is.


yes i would, actually i am lol :)


Same here, I'm buying it whatever the price is :D

ReevePosted:

BDB
Reeve Thats a little pricey, but im sure people will still buy them.


Yep, wouldn't you buy it? I am :) Looks awesome whatever the price is.


yes i would, actually i am lol :)

TaigaAisakaPosted:

BDB
ShadowBoltDashie
BDB
ShadowBoltDashie
RaheemSterling_31 I'm actually surprised there throwing in Kinect. Would have thought HAD to buy it separate knowing Microsoft.


I don't know where you have been but the Kinect is mandatory for the Xbox One. That is more and likely the reason the Xbox One is $100 more than the PS4.


And because Microsoft is greedy, they dont wanna sell them seperatly so they can make more money! :/


If they sold them separately I'm sure a lot of people would move to PS4 or PC gaming. If it was already $500 and then they charged for the Kinect, I definitely wouldn't buy it.


No, I mean $500 for the One+Kinect and $400 without the Kinect.


Oh ok I see what you mean. The Kinect is mandatory for the Xbox One to work so unless they make a whole new system or something, the Kinect will be forcefully sold with the Xbox One.

MentalistPosted:

ShadowBoltDashie
BDB
ShadowBoltDashie
RaheemSterling_31 I'm actually surprised there throwing in Kinect. Would have thought HAD to buy it separate knowing Microsoft.


I don't know where you have been but the Kinect is mandatory for the Xbox One. That is more and likely the reason the Xbox One is $100 more than the PS4.


And because Microsoft is greedy, they dont wanna sell them seperatly so they can make more money! :/


If they sold them separately I'm sure a lot of people would move to PS4 or PC gaming. If it was already $500 and then they charged for the Kinect, I definitely wouldn't buy it.


No, I mean $500 for the One+Kinect and $400 without the Kinect.

MentalistPosted:

Reeve Thats a little pricey, but im sure people will still buy them.


Yep, wouldn't you buy it? I am :) Looks awesome whatever the price is.

ReevePosted:

Thats a little pricey, but im sure people will still buy them.

TaigaAisakaPosted:

BDB
ShadowBoltDashie
RaheemSterling_31 I'm actually surprised there throwing in Kinect. Would have thought HAD to buy it separate knowing Microsoft.


I don't know where you have been but the Kinect is mandatory for the Xbox One. That is more and likely the reason the Xbox One is $100 more than the PS4.


And because Microsoft is greedy, they dont wanna sell them seperatly so they can make more money! :/


If they sold them separately I'm sure a lot of people would move to PS4 or PC gaming. If it was already $500 and then they charged for the Kinect, I definitely wouldn't buy it.


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