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Microsoft Defends Xbox One Price Tag As "More Complete Value Proposition"

Author:
Jonathan Lester
Category:
News
Tags:
Microsoft, Xbox One

Microsoft Defends Xbox One Price Tag As "More Complete Value Proposition"

Kinect And Entertainment The Key

We now know that the Xbox One will launch on November 22nd, but its hefty £429 price tag is still raising a few eyebrows. Microsoft's Yusuf Mehdi has spoken out (for the umpteenth time this week) to suggest that it represents a "complete value proposition" thanks to Kinect functionality and an all-in-one blend of games and entertainment.

“Competitively speaking, I feel like we have a much better and more complete value proposition," Microsoft's chief marketing offer told a Citi Global Technology Conference audience [via Geekwire]. "We do things that aren’t found on other platforms. The Kinect is a huge piece of differentiation, and the fact that we do entertainment and gaming.

“We wanted something to really differentiate that lets you play games as if you’re playing movies and we wanted to break the barrier of being able to voice control your television," he continued. "So to do that, we added a lot of capability. For $499, we think the value we provide for that is a very good deal. We feel that we’ve done the right balance."

The 'One' in Xbox One ostensibly refers to a unified lounge entertainment hub, which Yusuf was keen to expand upon. “We’re trying to provide a central device in the living room that for the first time can unify all forms of entertainment in one simple effort. We don’t just want to unify it, but then allow literally with your voice to control your television. We think TV’s will truly become smart TV’s where you can browse and do Skype communication and interactive television. Xbox One is key to opening up that world of next-generation entertainment.”

It seems obvious to suggest that Microsoft intends to make a profit on the Xbox One considering the £430 buy-in, but regardless, that's the plan. “The strategy will continue which is that we’re looking to be break even or low margin at worst on [Xbox One], and then we make money selling additional games, the Xbox LIVE service and other capabilities on top," he concluded. "And as we can cost reduce our box as we’ve done with 360, we’ll do that to continue to price reduce and get even more competitive with our offering.”

Mr. Mehdi has been a busy chap recently, providing soundbites aplenty about the Xbox 360 and upcoming Xbox One. You'll only need to take a look at our front page. However, the big news is that the entertainment system will release on November 22nd, a fact that will be drilled into you throughout the next few days by practically everyone on the internet.

Sooooo, thoughts?

Add a comment4 comments
dklunan  Sep. 4, 2013 at 15:57

I've preordered XBox One and PS4. The problem now is that I'm not going to be able to eat or drink in December. I can't wait!!!!

DivideByZero  Sep. 4, 2013 at 16:03

Not a fan of Kinect and I am looking for a game console, not an Entertainment unit... so I feel that this is not really being pitched at me.

The Price of £429 is not exactly mega high. Same as the PS3 release price, or thereabouts.

But I can't help see this statement and *HeadDesk*

"We do things that aren’t found on other platforms. The Kinect is a huge piece of differentiation, and the fact that we do entertainment and gaming.

Jesus Christ.... Kinect is not new, even if it is improved. Even the Wii did Entertainment AND gaming.

Maybe entertainment will be new for the Xbox, as people will actually be able to watch HD movies they buy from the shop on it now (unlike the HD-DVD debacle).

socialjeebus  Sep. 5, 2013 at 02:25

Not a fan of Kinect and I am looking for a game console, not an Entertainment unit... so I feel that this is not really being pitched at me.

The Price of £429 is not exactly mega high. Same as the PS3 release price, or thereabouts.

But I can't help see this statement and *HeadDesk*

"We do things that aren’t found on other platforms. The Kinect is a huge piece of differentiation, and the fact that we do entertainment and gaming.

Jesus Christ.... Kinect is not new, even if it is improved. Even the Wii did Entertainment AND gaming.

Maybe entertainment will be new for the Xbox, as people will actually be able to watch HD movies they buy from the shop on it now (unlike the HD-DVD debacle).


If entertainment is being listed as a justification for the price point, then surely the price point should be reduced for the non-US/Canada market (ie. the rest of the world) where the feature is barely going to be beyond what the 360 / PS3 already offer.

DesG  Sep. 6, 2013 at 16:25

I'll be first in the Q for a non-kinnect version at about the £150 mark, 12 months?

Cheers, Des.

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