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Xbox 720 will cost $99 with cable TV subscription, predicts Pachter

IncGamers: Michael Pachter has made a prediction regarding the retail model of Microsoft’s next console, which most of us are calling the Xbox 720 until we know any better.

Pachter, gaming analyst at Wedbush Securities, believes that Microsoft will adopt a pricing model similar to that of a smartphone – with a low up front cost and a rolling subscription.

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Catoplepas1446d ago

Pachter couldn't predict his own bowel movements, let alone future market trends.

Godmars2901446d ago (Edited 1446d ago )

I agree with you, but still, given that MS is already doing it with the 360, expanding the deal from their own store, its too obvious that they at least wont offer the option.

Unless of course your Pachter. Then you make the comment and expect people to think you're a genius.

AAACE51446d ago

I counted that prediction by saying verizon or att will do it instead!

gaffyh1445d ago

I actually thought this was a good idea when I heard about them doing it with the 360, but a rolling contract would not be wise, especially from the beginning.

Think about it this way:
1. MS would need to partner with a cable company, and therefore share any profits of the subscription service.
2. $99 would never cover the cost of the console itself, meaning MS would be taking a MASSIVE loss. And would have to rely on consumers continuing to pay their contract.
3. This would mean the minimum contract term would have to be 2 years, and for the first year or two, MS' financials would look terrible.

On the other hand, they could charge $399 at launch, and sell to the core gamers for a year or two. Then down the line offer this subscription system, which would then work.

There's also a big issue with this idea as a whole, and that is that the Xbox 720, will use an immense amount of power compared to a cable box. It will also have a PSU and fans to keep it cool, because it is a game machine, and machines like this are not terribly reliable, at least not as reliable as a simple cable box. Unless they can figure out a way to power on part of the Xbox 720, without too much load on PSU and CPU, I can't see this being very viable in the long term.

Godmars2901445d ago (Edited 1445d ago )

You're not factoring in the added charge for XBL. or that more than likely a cable company will be paying them. Especially to have it exclusively tied to them.

Nevermind that we're not talking about gamers, but the general consumer. $99 for a cable box with a social features that also plays console games will be a more appealing notion. Also pretty sure a system could be made with a low power/always on consumption mode for just for watching, and a full on mode for playing games.

The only thing that would truly ruin it for all parties would be another RROD incident. People might be stupid enough to pay $600 over two years for something that'll likely be $400 day one, but if they have to go through several while missing shows, they wont go near it no matter how much damage control is done.

Also, how about just ignoring Pacther's $99 price point. Xbox3 could be $600~$400 day one and $199~$299 with a two year $15 XBL/month deal would be appealing.

NukaCola1446d ago

Pachter doesn't have bowel movements, he is constantly full of crap.

TekoIie1446d ago

That is totally the best insult add-on.....wait for it...... EVER!!!!!!

mochachino1446d ago

Well said bubble earned.

FunAndGun1445d ago

that comment right there deserves a funny bubble.

shutUpAndTakeMyMoney1446d ago

I can't predict my bowl movement.. who can?
oh hold on I feel something.. Be right back.

LAZL0-Panaflex1446d ago

Bowel movements. Awesome. He cant predict his own. Even more awesome.

WeskerChildReborned1446d ago

Haha now that's funny. I wonder why he even predicts anything in the first place. The only ones he'll get right are the ones that are obvious.

+ Show (3) more repliesLast reply 1445d ago
wAnxTa1446d ago

This guy can't predict shit!

Hoje03081446d ago (Edited 1446d ago )

Catoplepas beat you to it.

Edit: Very good point, aviator.
It appears as though we have a silent Pachter fan in our midst.

aviator1891446d ago

Reinforcement is always good, especially with someone like Pachter. :p

LAZL0-Panaflex1446d ago (Edited 1446d ago )

I know he kept saying gears would come to ps3. It wont even come to pc,...why would a microsoft ip come to the competition's console. Maybe when the tablets take over, but not as long as there is consoles will you NEVER see gears on a sony console. Same with halo. Just like you'll never see killzone,god of war, infamous, little big planet, uncharted on nintendo or xbox.

And yes gears is a MICROSOFT ip, because only a retard would alienate pc, ps3 & nintendo. It is not an epic ip and there is no 3 game deal,...it is an every game deal.

majiebeast1446d ago

This guys job must be the easiest thing ever just say random shit and when it doesnt come out 99% of the time just spin it so it looks like you were 1% right.

JBSleek1446d ago (Edited 1446d ago )

Why are people on these forums so rude to this guy? I would be for a subsidized Xbox 720 for $99 if it came with cable or even Xbox Live.

Even if that isn't true a subsidized next generation console is smart if you are willing to spend more over time then cough up all that money at once it's an option.

I don't understand the hate over an analyst who job is to predict he doesn't need to be right.

wages of sin1446d ago

You're absolutely right.

Many of the people here have no cooth, let alone intelligence, just mindless hate and drivel. They don't understand his job at all-they just worship plastic.

bobshi1446d ago

Indeed, when MS announced the $99 Xbox 360 trial - which is now being rolled out after being successful - I thought it would be an ideal test for the potential of having a $99 Xbox 720 on a similar deal.

That puts pay to all of those people crying "economy! economy!" when people say that a console with beefy specs is going to cost a load of dosh that people don't currently have, despite splashing similar amounts on iPhones and iPads.

But why do people buy iPhones? Cos its cheap to buy then a smaller fee per month.

I doubt as many would buy if it was the outright cost only.

dcbronco1446d ago

Who are you people and why are you having an intelligent conversation on N4G?

I think Pachter is off a lot of the time but not on this. Bobshi your point about the economy is a really good reason to do this. The next generation of consoles won't be as expensive to produce as most seem to think and get money from the cable company and the consumer would be a smart way for MS to sell a ton of consoles.

Verizon sells Direct TV in my area since they couldn't sell Fios. No reason why MS couldn't do a deal with the cable company that allows the Xbox to act as the cable box. You get Live and cable and they both make money. That may be the reason for the "always on" section of the leaked 360 specs. A separate APU for the cable box features in the 720 that would be far better than what Motorola is offering now.

I'd consider dropping my Motorola stock if I had some.

Felinox1446d ago

I think $199 with subscription is more likely foe first year at least. Demand will be more than they can keep up with. So theyll definately get th extra $100 a unit.

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