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.

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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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TaigaAisakaPosted:

BDB We don't need an economist to tell us the price is to high, we figured the moment they released the prices.


Cheaper than I thought, I'll say that much. I was really expecting both consoles to run $600.

MentalistPosted:

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! :/

MentalistPosted:

We don't need an economist to tell us the price is to high, we figured the moment they released the prices.

TaigaAisakaPosted:

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.

LWRPosted:

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

LWRPosted:

Katsumi
RaheemSterling_31
Katsumi
RaheemSterling_31 They should make the prices equal

It's not like the Xbox is way better than the PS4


The main reason that the Xbox One is $100 more than the PS4 is because the Kinect is included.


Yeah i wish it wasn't


Well apparently the Kinect is a large part of the console now. Hopefully it actually has a use when it comes to Operating the Xbox One and we didn't just waste our money on it


I know, i don't even think it will have a part tbh.

KatsumiPosted:

RaheemSterling_31
Katsumi
RaheemSterling_31 They should make the prices equal

It's not like the Xbox is way better than the PS4


The main reason that the Xbox One is $100 more than the PS4 is because the Kinect is included.


Yeah i wish it wasn't


Well apparently the Kinect is a large part of the console now. Hopefully it actually has a use when it comes to Operating the Xbox One and we didn't just waste our money on it

KatsumiPosted:

Frog I really don't think the price is too bad, it could be much higher for all that is included!


I was expecting a much higher price then what was originally set. Well the PS4 is selling for $500 over here in Australia either way

LWRPosted:

Frog I really don't think the price is too bad, it could be much higher for all that is included!


You have to include games and live..

LWRPosted:

Katsumi
RaheemSterling_31 They should make the prices equal

It's not like the Xbox is way better than the PS4


The main reason that the Xbox One is $100 more than the PS4 is because the Kinect is included.


Yeah i wish it wasn't


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