Analysis: Are console contracts the future?

Price promotions are an industry staple, but few have got the trade talking like Microsoft’s latest offer.

The platform holder’s US stores are selling a 4GB Xbox 360 and Kinect for just $99. The catch? It comes with a two-year subscription to Xbox Live, priced at $15 per month, and an early termination fee.

This model is commonplace in other sectors: smartphone handsets are discounted or free with contracts, and media packages like Sky+ come with a free set-top box.

But it’s rarely been tried in gaming before.

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dangert122163d ago

It's sort of happening now with mobile phones and Ps3's/Wii's etc In the package...Or even Brighthouse style contracts...though I wouldn't personal do this ish

Amazingmrbrock2163d ago

It's not in my future thats for sure.

There's thin thing purchasing things where when you have alternatives you can get something else.

That's what I'll be doing. If the next box requires me to get a contract I just won't involve myself with that system. If the next playstation needs a contract I will do the same.

There's always the pc.

TBM2163d ago

I know i will not be ripped off to play my hobby like i im with my cell phone. i will not purchase a console where i have to pay for more in the end when i could just purchase it in full right from the off.

WeskerChildReborned2163d ago

What PS3 or Wii has a contract?

ShaunCameron2163d ago (Edited 2163d ago )

Exactly. I never heard of such. But I wouldn't be surprised if Sony goes that route.

dangert122163d ago

I said when you get mobile phones you sometimes get phones In the package so It's sort of whats going on here...or If you go to brighthouse you can get a contract for these sort of things...


WrAiTh Sp3cTr32163d ago

I can see this as a win win in some sorts. It means a company like Microsoft can go all out on the specs of their next console and have customers pay the premium price through contractual obligations, which would bring the initial investment of the customer, down to something more feasible. If not, then I suspect next-gen hardware won't be as advanced as some would hope.

GraveLord2163d ago

If you think about it all the successful products out there are on contracts with monthly payments.(Cell Phones and Cars...etc)

iamnsuperman2163d ago

I wouldn't be surprised if this occurs. Think about it. It is great to advertise at a seemingly low price and it is very successful in the mobile market. We will see if it is implemented and more importantly how (really expensive/hidden costs) to see if it is actually beneficial.

MariaHelFutura2163d ago

Remember this. Software is where these companies make most of their money. People usually buy 1-2 consoles and dozen and dozens of games. One day consoles will probably be free w/ a contract (2-5yrs) to the online subscription (just like the 360 and cell phones). They will be required to be online to play and will be disconnected from the network for non-payment. Like I said software is where they make their money, could you imagine if they had 500 million in the wild how much they would make off of a blockbuster game release. Basically the "cell phone business platform" will take over intergrating the payment of the console and the payment of the service into a monthly payment. It probably won't just be videogames that sees this business structure forced into it, the more things that become "connected" will see this happen (TV, Music, CPUs, Etc).

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