Thurott: $299 version of Xbox v.Next will come with a $15/mo XBLG sub, not $10

Subitai said:
I'll take it!

I bet Sony will do something similar w/ PS4 at E3.
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After $599 there is no way they can try pulling that off again. They couldn't be that stupid. Microsoft is doing the third system overreach it seems. Nintendo did it and paid the price. Sony did it and paid the price. Microsoft is about to do it themselves.
 
mattp said:
60 a year
60 / 12 = 5

5 dollars a month


edit: my point was, assuming most people are buying live a year at a time. theyre technically paying 10 a month for the subsidy
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why would you make that assumption when we're talking a model specifically designed for people that want to pay monthly instead of high upfront costs? Similarly, you would describe WoW as $15 a month, not whatever the discounted yearly rate is

You can't get Live for $5 a month, you can get it for $60 a year. It's not the same thing
 
Kysen said:
How do they enforce the 2 year contract? It's not like a phone where they just cut the line and then you cant make calls (becomes useless). Unless there is an online verification you could just refuse to pay after the first month and keep the console offline. Then continue to play games.
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You should try that when it comes out, let us know how it goes!
 
Loch Doun said:
The fact that millions of cell phone consumers still sign up for 2 year contracts just so they can get 200 bucks off their iPhone tells me this will be a great success for Microsoft.
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I think they sign up for the contracts because they don't have a choice. And it's actually a lot more than $200.
 
It seems to me how good of a deal this is largely depends on a.) do you pay for XBL? and b.) do you pay for XBL month to month or year to year? If you pay for XBL month to month its not that bad. Year to year its quite a bit more expensive, and if you wait for super cheap xbl cards to pop up, incredibly more expensive.

In all cases, I think GAF will be shocked to see how well this works. People will knowingly pay more to have those payments spread out over time. Save $200 on Jr.'s Christmas present? You bet your ass people are going to do it.
 
sunnz said:
Yes but with phones you get a lot of free texts, minutes, free online usage ect that actually add up to balance the cost out in a way.
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True but you I don't think MS is doing this to create a "deal" but as a pricing policy that people with cell phones are used to and with a lower cost of entry that can appeal to a larger audience
 
I think these consoles will have a hard time launching at $500.00 in this economy, but I can definitely see many opting to pay less up front and more over time just to get it right away. I sure as hell will not be going that route, though. Talk about a ripoff.
 
sangreal said:
why would you make that assumption when we're talking a model specifically designed for people that want to pay monthly instead of high upfront costs? Similarly, you would describe WoW as $15 a month, not whatever the discounted yearly rate is
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what?

my point is, anyone with an xbox probably gets xbox live
most of those people pay 60 for the year (comes out to 5 a month)
so instead, they buy a 299 xbox and are locked into paying 15 a month. that is 10 more a month than they would normally pay

thus, the source of the "mistake" that guy made saying the subsidized xbox is 10 dollars a month
 
Mesoian said:
Or better if they can actually afford the payments.

But if you can afford the payments, why would you just buy the lead SKU?

It'll be real interesting to see how the first 6 months of this console race goes.
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Because seeing $500 less in your bank account is worse than seeing $300, then $15 next month after your next pay cheque, then the next month, etc, etc.
 
Doesn't this mean the "Always Online" is pretty true then? What would happen if someone lost their job and couldn't pay the for live anymore? I know we talk about used games but what about people who sale their system when they don't need it? People could buy a xbox system on craigslist advertised as a full featured console and get stuck into a two year contract or even worse fucked out of playing a system thats tied to someones delinquent account?

This shit is bringing a lot of grey area questions into gaming and I don't like it.
 
I'm in the boat saying that the payment option is smart business. Sony should have a similar plan. There really isn't a downside.

People who can afford it will buy your product, and people who can't afford it will have a better opportunity to buy you product.
 
Loch Doun said:
The fact that millions of cell phone consumers still sign up for 2 year contracts just so they can get 200 bucks off their iPhone tells me this will be a great success for Microsoft.
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Except that's basically the only choice you have for phones.
 
Grinchy said:
On second thought, paying an extra $40 over the course of 2 years really isn't the worst thing ever to save $200 upfront. Anyone buying an xbox is going to want to play their games online and will have to pay the online tard tax anyway, so it's pointless to pretend it's a $500 console vs a $660 one.

This may be a really good move if true.
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this and if its like the current 360 one, they also extend the warranty until end of contract.
 
mattp said:
what?

my point is, anyone with an xbox probably gets xbox live
most of those people pay 60 for the year (comes out to 5 a month)
so instead, they buy a 299 xbox and are locked into paying 15 a month. that is 10 more a month than they would normally pay

thus, the source of the "mistake" that guy made saying the subsidized xbox is 10 dollars a month
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Are there numbers for this? I'm genuinely curious to see how the numbers break down. Assuming it to be the case because of GAF is not a smart move.
 
mattp said:
what?

my point is, anyone with an xbox probably gets xbox live
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Well, that is simply not true but it doesn't really matter

most of those people pay 60 for the year (comes out to 5 a month)
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No, it comes out to $60 a year. You need $60 to buy it. You can't give them $5 a month. The subsidized plan is for people that don't have cash and would rather pay lower monthly costs.

so instead, they buy a 299 xbox and are locked into paying 15 a month. that is 10 more a month than they would normally pay
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and my point is you're wrong. If they were to pay for live monthly it would be $5 more a month than they would normally pay for live monthly. This deal is not meant for people who can buy the console and live "normally"
 
Con_Smith said:
Doesn't this mean the "Always Online" is pretty true then? What would happen if someone lost their job and couldn't pay the for live anymore? I know we talk about used games but what about people who sale their system when they don't need it? People could buy a xbox system on craigslist advertised as a full featured console and get stuck into a two year contract or even worse fucked out of playing a system thats tied to someones delinquent account?

This shit is bringing a lot of grey area questions into gaming and I don't like it.
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Do you know what is credit card?or are you saying $99+2 years contract 360 is required online?
 
Loch Doun said:
The fact that millions of cell phone consumers still sign up for 2 year contracts just so they can get 200 bucks off their iPhone tells me this will be a great success for Microsoft.
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You would usually get $400 discounted off your iPhone. This goes for every other flagship smartphone as well.
 
EuropeOG said:
Because seeing $500 less in your bank account is worse than seeing $300, then $15 next month after your next pay cheque, then the next month, etc, etc.
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No, it's not really. Because I know I would be paying more.

And if buying a console hurts your bank account that much, maybe you shouldn't be buying the console in the first place.
 
Blastoise said:
I'm in the boat saying that the payment option is smart business. Sony should have a similar plan. There really isn't a downside.

People who can afford it will buy your product, and people who can't afford it will have a better opportunity to buy you product.
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Agreed, I don't like it but it makes sense in the US market at least, in Europe where cellphone subsidies are less common place I'm not sure how well this subsided model will work
 
Kysen said:
How do they enforce the 2 year contract? It's not like a phone where they just cut the line and then you cant make calls (becomes useless). Unless there is an online verification you could just refuse to pay after the first month and keep the console offline. Then continue to play games.
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wow
 
Hmm I think it'd be more than 500.. But the real question is, the point of subsiding it is for people who I'd guess they figure can't afford the full asking price, but they still run credit so how would these people qualify either way?
 
Con_Smith said:
Doesn't this mean the "Always Online" is pretty true then? What would happen if someone lost their job and couldn't pay the for live anymore? I know we talk about used games but what about people who sale their system when they don't need it? People could buy a xbox system on craigslist advertised as a full featured console and get stuck into a two year contract or even worse fucked out of playing a system thats tied to someones delinquent account?

This shit is bringing a lot of grey area questions into gaming and I don't like it.
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sounds like another win for Microsoft. killing used console sales!
 
Con_Smith said:
Doesn't this mean the "Always Online" is pretty true then? What would happen if someone lost their job and couldn't pay the for live anymore? I know we talk about used games but what about people who sale their system when they don't need it? People could buy a xbox system on craigslist advertised as a full featured console and get stuck into a two year contract or even worse fucked out of playing a system thats tied to someones delinquent account?

This shit is bringing a lot of grey area questions into gaming and I don't like it.
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On the contrary, it means it's not true. That they are offering a $500 model with no subscription should tell you that.
 
H_Prestige said:
I find it cute that MS thinks people are willing to sign a contract for something as superfluous as Live.
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Dunno what rock you've been living under, but people WILL sign it. For many, it will work out as an "easier" option. Again, just look at how it worked for mobile phones.
 
The Spin in here is awesome, how can this be a good thing?

Have we forgotten about other sub services on top of this like Netflix, Hulu etc.

I guess to each his own.
 
Maximilian Kolbe said:
Do you know what is credit card?or are you saying $99+2 years contract 360 is required online?
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I think he's talking about the used console market could be hurt by this if on contract machines are sold to uninformed customers

Bunta said:
There are few options. An unlocked phone is substantially more.
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depends on the provider, Tmo is trying reduced priced phone plans because they don't bundle in subsidize phones anymore. You can still get a subsidized phone but it'll cost you more over the long run than buying a phone outright
 
Blastoise said:
I bet that $15 dollars will include more than XBOX live. Think media content (music,TV,movies). People will eat that shit up in the holiday season.
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Not in any way shape or form. As others have pointed out, that $15/month over the two years only comes out to about $2.50 more per month than a regular live gold sub. That is where the kicker is. MS sees 66% more profit from the sub, you get a next-gen system for $299 down.

I fully expect Sony to do the same thing once they announce (at E3?) the PS Plus plan for PS4. a) It's easy/free money for them, b) they HAVE to because fact out, MS is going to sell a ton of units under this model. If sony doesn't copy, they WILL lose those sales to MS (more than likely many of them for the rest of the generation)
 
Miles Quaritch said:
Don't forget to factor in the fact that subs can be bought for $40 or less, thus making the non subsidized console even more cheaper.

Saying that, the one aspect we're not factoring in is that the subsidized console comes with a two year warranty, so maybe it does work out to be better deal...
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I really doubt you'll be able to find XBL Gold 1yr subs for less than MSRP around the launch of a new MS Console. The only reason they're on sale right now is because we're in the tail end of a 7 year generation.

ilnadmy said:
It would still be cheaper to buy it at $500 and get a $60 annual XBL subscription.
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Isn't that how subscription plans are supposed to work? You pay less up front and more over the length of the subscription. I'm confused why you think it would be any different.

BadWolf said:
If PS4 is $400 and doesn't require Plus for multiplayer then $660 is anything but competitive, heck even if you factor in 2 years of Plus its still a substantial difference.
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You're assuming the PS4 launches at $400. I don't think anyone wants to lose money off the bat this gen. It's a shaky business model that leaves the door wide open for disruptive competitors to come in and steal market share while you're still losing money (see Nintendo Wii U).

The BOM of the PS4 is over $400 already, and that's assuming they don't include the Eye in every SKU, which would be a mistake in my opinion.



If Xbox Live Gold includes Xbox Music/Video subscription consider me sold.
 
H_Prestige said:
I find it cute that MS thinks people are willing to sign a contract for something as superfluous as Live.
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How much do want to bet that they will do it in droves? I personally think Live Gold is the biggest ripoff in gaming, but Microsoft has proven that people will pay for it. I sadly do not see that changing with this sort of model. In fact, I think it will be quite successful in this instant gratification age of 'give it to me now and I'll pay later.'
 
Miles Quaritch said:
You can't buy phones without contract?
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i can only speak for the US, but that's only true for new Sprint customers. every US carrier, including Sprint will sell current customers a new handset at full price and not require an annual contract, and all of them but Sprint will do the same for new customers. for some weird reason, if you're a new Sprint customer, even if you pay full price for a handset, you have to enter a 24 month contract. T-Mobile actually switched to a no subsidy model where you get the phone on a seperate 0.0% APR payment plan and can leave at any time as long as you pay the remaining balance on the phone.
 
demosthenes said:
No, it's not really. Because I know I would be paying more.
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every month (here in italy as in most of europe work month by month) u get money from ur job and u dont care if they take 15 dollars (or 10 euro)...also if it will cost more the initial cost is cutted down close to half

everything expansive is payed in this way nowdays...

go to buy a mercedes who thing go to pay it full? ppl know that they will pay more but they can pay 300/400 euro monthly ....but could not pay 60.000 euro in one time....

mobile phone here (italy is one of the first country for numbers of mobile phones) sell like that ...u buy a samsung galaxy 4 for 200 and then pay monthly for a full time contract at the end u will pay 150/200 euro more...


xbox will sell like bread

and i hope for sony ..they start to subsizing the price too
 
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