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

Doesn't Kinect 1 cost $50 to make? Kinect 2 could be easily double. Though probably not much more than that.

We're also talking R&D costs added to this, which people easily forget.

The BoM was estimated at $56, but bkilian on the Beyond3D forum (former Xbox audio engineer) said this:

Yeah, about as accurate as iSuppli is, ie, not at all. Doesn't include per unit patent and licensing costs, vastly underestimates some items, and doesn't seem to count things like the tilt motor assembly.

and this:

You keep repeating this number. Do you often pull numbers out of you butt like this? I know for a fact the BOM for Kinect wasn't anywhere near $56. If your source is iSupply, that doesn't help much, since they're useless at estimating costs of custom devices.
 
Not bad...I wonder haw many that covers.

The old Family Pack included four Gold subs so I can't imagine it would be less than that amount.

Doesn't that effectively amount to someone buying three annual individual subscriptions at the MSRP and/or a price increase of $80 over the prior "Family" package?

You can get what would have cost you $240 (4 Gold subs like a Family Pack) plus a subsidized console and an extended warranty for $180. The old Family Pack was an outstanding deal which I hated to see go but I see why they dumped it now.
 
I like how people are casually saying how stupid "consumers' are and that they won't notice. YOU are all consumers. This is money we're talking about. A lot of it. People pay attention to that shit. You're not a fucking genius because you can figure out 15*24.

That said, I think this pricing plan sounds like shit. It works for Microsoft on multiple levels though. It gets you entrenched in Live and ensures you're using their hardware for at least 2 years. It also makes it a pain in the ass to sell the thing.
 
hmm...seems a bit too steep for my taste...at least for an impulse buy...

Spending $200 and signing a two-year contract would feel a lot better....I'd likely get into that...
 
That is a lot of mental gymnastics.

No mental gymnastics involved, just simple math.

Sub model is $299 + $15*24 ($360)= $659

Since we know you would be paying $200 less up front for the console, the monthly payment towards the console is $200 divided by 24, which is $8.33. So $8.33 of every $15 monthly payment goes towards paying the console off.

XBox Live MSRP is $60 per year, divided by 12, you are paying $5 per month out of that $15 for XBox live.

So far we have $5 for Live and $8.33 for the console for a combined $13.33. That leaves $1.67 service fee every month
 
Wouldn't this pretty much confirm always online? Whats to stop someone from getting the 300$ sku to only cancel their sub and be content to play offline.
 
I hate those subscription scheme shit. I don't want pay to pay monthly fee and be locked for 2 years just for online play.
I'll just stick to PC and PS4 if online is free like it is for the PS3.
 
Wouldn't this pretty much confirm always online? Whats to stop someone from getting the 300$ sku to only cancel their sub and be content to play offline.

It's called a contract.

Wouldn't confirm always online though, current Xbox has a very similiar deal already without always online.
 
Wouldn't this pretty much confirm always online? Whats to stop someone from getting the 300$ sku to only cancel their sub and be content to play offline.

As was said (multiple) times already, the exact same thing that stops people from doing that TODAY with the subsidized Xbox 360.

If you don't pay your monthly fee and you don't pay your ETF, the console stops working.

It is registered at point of sale. For the term of the contract, the console must connect to Live at least once a month to verify the contract status.

"Refusing to pay and keeping it offline" isn't a genius move. It'll just result in a useless hunk of electronics.
 
It's called a contract.

Wouldn't confirm always online though, current Xbox has a very similiar deal already without always online.

That is through Microsoft store exclusively. If they want all retail stores selling this and subsidizing the way this rumour is it would be much easier for them to make the subscription through xbox live and enforce it through always online. You need I.D's and signatures for those contracts which I doubt all the retail stores are going to ask for then send it MS. They can't make you agree to one when you sign on Xbox live only ToS.
 
If they offer something similar to playstation Plus with live , I'm all in for the sub. If not, fuck um. Note paying for a service I can already do on current consoles
 
So far we have $5 for Live and $8.33 for the console for a combined $13.33. That leaves $1.67 service fee every month
That's rocket science, Officerrob.
You can't be posting logical cost breakdowns like that in this thread.
We're all supposed to be morally outraged by that additional $1.67/month cost.

And you didn't even factor in that this likely entails some kind of extended warranty/service contract as well.
 
Wonder if this means only one version for launch. Pretty smart move MS. I hope sony follow this move with only one system.

Would be great not to worry about getting stuck with the "tard pack" at launch.
 
That is through Microsoft store exclusively. If they want all retail stores selling this and subsidizing the way this rumour is it would be much easier for them to make the subscription through xbox live and enforce it through always online. You need I.D's and signatures for those contracts which I doubt all the retail stores are going to ask for then send it MS. They can't make you agree to one when you sign on Xbox live only ToS.

Nope. Microsoft store, Best Buy, Gamestop, Toys R Us, and Walmart.com

http://www.xbox.com/en-US/xbox360/consoles/entertainment-for-all
 

Great reply.

Maybe I should have made myself more clear. Live Gold as it stands is an absolutely worthless service. I don't care what price MS subsidized their Kinect garbage at if it means I have to pay for their continuing scam.

PS Plus on the other hand is an actual deal with actual benefits which I will continue to pay for, so no matter what extraordinary price PS4 launches at, if Sony subsidizes with it, I'm there, because I know I'm not burning my money away for nothing.

Of course, Microsoft could change all this, but I guarantee they won't, and I find it all the more tragic for them.
 
what about credit checks and those with bad/no credit and deposits? My sister tried to get a phone at Verizon, and she has no credit, so they wanted a $700+ deposit... she left to go 'get money out of the ATM' and never went back. x-D

this is gonna be sloppy mess.
As others have noted, the current subsidized 360 is not available to those with bad or no credit.





so then it would be deposit or no deal, for people with bad/no credit? Harsh.
Yes, except in this case the "deposit" option is just "buy at full price"





I imagine the intent of your comment is to suggest "these things are expensive, people."

But if anything, regardless of the PS3's expensive build, its launch price has skewed people's perceptions and expectations towards higher prices.

There doesn't seem to be anything to suggest these upcoming systems will have exorbitant build costs relative to the PS3 at launch.

I would expect Microsoft's decision to price at $500/$300+24x$15 is towards launching at profit, or guaranteed eventual profit, per unit. Rather than rely on the old razor and blade model, where there's no guarantee that software royalties will recoup loss-leads on launch systems.

And I'm still at a loss as to what exactly could be so expensive about the Wii U.
The Wii U costs $200 less than this next Xbox is rumored to cost, and the same as the current 360 with Kinect... so perhaps it's not so much what is making the Wii U so expensive, but what is making everything so expensive.





Why does this model get so much hate?

It makes a lot of sense to me.

The exact same thing is done with mobile phones. The only offensive thing here is that MS will probably still charge for online.
Because subsidies distort the market and hide the true cost of products.
 
$500 sounds insanely expensive. But I'm not really surprised, Microsoft hasn't really had competitive pricing in a while....and I'm sure they're going to pack in Kinect 2.0 with every system.

I feel that they will face a lot of competitive pressure if Sony announces a $399 PS4 requiring no subscription fee and free online (and more powerful hardware).
 
I kust hope contracts never become really popular. You can say goodbye to price cuts if it does.
Today: $299 +$15 month for 2 years
5 years from now: $199 + $20 month for 2 years.
etc.
 
The Wii U costs $200 less than this next Xbox is rumored to cost, and the same as the current 360 with Kinect... so perhaps it's not so much what is making the Wii U so expensive, but what is making everything so expensive.
I imagine the intent of the $500 option is profit on hardware and/or immediate profit on "ecosystem."

There is nothing afaik that would lead me to believe that a $500 XBOX next would be loss-leading, unless something like Kinect is ridiculously expensive to include.
 
If you're already paying the sub for Gold on X360, then do you pay it twice now (once for 360 and once for Next)? Or do you pay the Gold subscription once and can use your Live account on either system?

If the latter then you're really only paying $300 for Next. If you were going to pay the Gold sub cost anyway...
 
People are not stupid, they'll do the math. I'd argue that $299 is still too high a initial price barrier for this idea to really catch on. With this pricing model, they are not really going to grab the mainstream yet.

I think consoles need to be at $199 or less for the price conscious to jump in. Or have Wii Sports.
 
Great reply.

Maybe I should have made myself more clear. Live Gold as it stands is an absolutely worthless service. I don't care what price MS subsidized their Kinect garbage at if it means I have to pay for their continuing scam.

PS Plus on the other hand is an actual deal with actual benefits which I will continue to pay for, so no matter what extraordinary price PS4 launches at, if Sony subsidizes with it, I'm there, because I know I'm not burning my money away for nothing.

Of course, Microsoft could change all this, but I guarantee they won't, and I find it all the more tragic for them.

I don't think Microsoft really cares what you think and it sounds like you've already made up your mind about them anyways. They don't need to impress people like you and like you said, there's always Sony to go to.
 
I remember the pre-PS3 launch hype and how there was "no way" that it would be anything but $299. I wonder how many people who now think the PS4 is going to be cheap were beating that particular drum.
 
I remember the pre-PS3 launch hype and how there was "no way" that it would be anything but $299. I wonder how many people who now think the PS4 is going to be cheap were beating that particular drum.

I don't think anyone believes the PS4 is going to be cheap.

Realistic estimates place it at around $499, and if Sony surprises us at $399, that's probably the lowest it can go.
 
Who is estimating 500?

Gary-Oldman-Yelling-Everyone-Leon-The-Professional.gif
 
I can't see the PS4 being $499. Unless Sony are absolutely moronic, which I guess is conceivable.

The next XBOX is going to be media blitzing "Starting at $299*" even if the standalone system is $499.

The highest Sony should be going is $450 and even that's not good. $399 should be the target price.
 
SO wait. What happens if you don't pay? Can they shut your whole xbox down and off? Make it so you can't play games off disc with no internet connection? Hijack the DVD/Blu Ray components? Wouldn't this subscription model being true pretty much confirm always online?
 
SO wait. What happens if you don't pay? Can they shut your whole xbox down and off? Make it so you can't play games off disc with no internet connection? Hijack the DVD/Blu Ray components? Wouldn't this subscription model being true pretty much confirm always online?

Regular Xbox already has the same subscription model. I don't know what they do, I'm guessing up to three months notice and then, they cancel your Gold account. Then sent a letter to the payment bureau or something and get someone visit you to take your Xbox away.
 
SO wait. What happens if you don't pay? Can they shut your whole xbox down and off? Make it so you can't play games off disc with no internet connection? Hijack the DVD/Blu Ray components? Wouldn't this subscription model being true pretty much confirm always online?

Microsoft ninjas kidnap you when you're asleep.
 
$500 sounds insanely expensive. But I'm not really surprised, Microsoft hasn't really had competitive pricing in a while....and I'm sure they're going to pack in Kinect 2.0 with every system.

I feel that they will face a lot of competitive pressure if Sony announces a $399 PS4 requiring no subscription fee and free online (and more powerful hardware).

Let him dream.
 
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