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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imgurPosted:

I really don't see this as being too high, it seems reasonable to me...

KatsumiPosted:

ShadowBoltDashie
Kurumu The price is fine for me, it comes with a kinect, the PS4 doesn't come with the eye and with a game it is only 100$ cheaper but if you want the eye then it is only 40$ cheaper.


The price is not a problem for me at all. Honestly I thought the Xbox One and PS4 were going to be $600. The only thing is I don't want the Kinect because it will take up room for me.


It's the same for me. I was looking at the Xbox One for $600 and the PS4 for $700. The prices surprised me in terms of how low they where

CBR_FIREBLADEPosted:

After a year or so the price will have come right down, every company does it almost, its called market skimming, you charge top dollar, and the people who want it bad enough or who can afford it, buy it for that amount, and then you gradually bring down the price to increase sales from the people who decided the high amount wasnt worth it. Not to mention places will always have sales and offers will bring the price down.

-SnowflakePosted:

$500 is very expensive for a gaming council that you have to pent up to $70 on a game... I feel like the xbox one will not have as many people buying it as xbox 360 did... i for one dont plan on buying it... ill keep my good old 360

WavelengthPosted:

The price really isn't too high. People are acting like 500$ is a lot of money.

TaigaAisakaPosted:

Kurumu The price is fine for me, it comes with a kinect, the PS4 doesn't come with the eye and with a game it is only 100$ cheaper but if you want the eye then it is only 40$ cheaper.


The price is not a problem for me at all. Honestly I thought the Xbox One and PS4 were going to be $600. The only thing is I don't want the Kinect because it will take up room for me.

KurumuPosted:

The price is fine for me, it comes with a kinect, the PS4 doesn't come with the eye and with a game it is only 100$ cheaper but if you want the eye then it is only 40$ cheaper.

TaigaAisakaPosted:

RATF
SwagDaddyYolo
RATF if you think about it. trade in your xbox slim and then get in store credit then put that towards the xbox one and there you go a lowered price


Please don't, if you're going to sell it, sell it online. With all of your games and xbox, you would only get around 80 bucks. Sell it on eBay or another online auction thing and get the amount of money that you should get. It's cheaper for the buyer, you get more money.


I live in the UK and you can see how much you get for what you have and for my 3 slims, 2 kinects, my PS3 and games for the xbox and PS3 i can get 357.98 is that not good??


I'm sure you could get more for that on eBay. Depends on the gigabytes as well. I'm sure you could sell one Xbox 360 Slim 250 GB for around 98 pounds on eBay. I don't know how much Kinects sell on eBay but I'm sure it's more than game stores will give you credit for.

RuinsPosted:

SwagDaddyYolo
RATF if you think about it. trade in your xbox slim and then get in store credit then put that towards the xbox one and there you go a lowered price


Please don't, if you're going to sell it, sell it online. With all of your games and xbox, you would only get around 80 bucks. Sell it on eBay or another online auction thing and get the amount of money that you should get. It's cheaper for the buyer, you get more money.


I live in the UK and you can see how much you get for what you have and for my 3 slims, 2 kinects, my PS3 and games for the xbox and PS3 i can get 357.98 is that not good??

LWRPosted:

In the UK FIFA 14 is 55 when it's usually 38


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