Don Mattrick reckons that the Xbox One is a bit of a steal at $499, suggesting that Microsoft are "over-delivering value" when compared to "other choices" that consumers might make.
He pointed out that in context, though he didn't exactly specify, paying $499 for a high-end consumer electronics product is not "ridiculous" these days.
"It’s a lower number than some of the analysts had forecasted," he told Bloomberg. "We’re over-delivering value against other choices I think consumers can get.
“Any modern product these days you look at it [and] $499 isn’t a ridiculous price point. We’re delivering thousands of dollars of value to people, so I think they’re going to love it when they use it.”
He's might have a point.
Of course, Microsoft's competition has undercut them somewhat, mainly in the case of the PS4 by removing the camera.