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Submitted by iamironman 891d ago | news

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. (Industry, Michael Pachter, Microsoft, Xbox 360)

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Catoplepas  +   891d ago | Funny
Pachter couldn't predict his own bowel movements, let alone future market trends.
Godmars290  +   891d 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.
#1.1 (Edited 891d ago ) | Agree(6) | Disagree(5) | Report | Reply
AAACE5  +   891d ago
I counted that prediction by saying verizon or att will do it instead!
gaffyh  +   890d 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.
Godmars290  +   890d ago
@gaffyh
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.
#1.1.3 (Edited 890d ago ) | Agree(0) | Disagree(0) | Report
NukaCola  +   891d ago | Funny
Pachter doesn't have bowel movements, he is constantly full of crap.
TekoIie  +   891d ago
That is totally the best insult add-on.....wait for it...... EVER!!!!!!
mochachino  +   891d ago
Well said bubble earned.
FunAndGun  +   891d ago
that comment right there deserves a funny bubble.
I can't predict my bowl movement.. who can?
oh hold on I feel something.. Be right back.
chukamachine  +   891d ago
epic +1
LAZL0-Panaflex  +   891d ago
Bowel movements. Awesome. He cant predict his own. Even more awesome.
ALLWRONG  +   891d ago
Yeah, poop can't poop
WeskerChildReborned  +   891d 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.
wAnxTa  +   891d ago
This guy can't predict shit!
Hoje0308  +   891d ago
Catoplepas beat you to it.

Edit: Very good point, aviator.
It appears as though we have a silent Pachter fan in our midst.
#2.1 (Edited 891d ago ) | Agree(3) | Disagree(3) | Report | Reply
aviator189  +   891d ago
Reinforcement is always good, especially with someone like Pachter. :p
LAZL0-Panaflex  +   891d 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.
#2.2 (Edited 891d ago ) | Agree(0) | Disagree(0) | Report | Reply
5119ent  +   891d ago
i hope not..
majiebeast  +   891d 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.
JBSleek  +   891d 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.
#5 (Edited 891d ago ) | Agree(11) | Disagree(1) | Report | Reply
wages of sin  +   891d 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.
bobshi  +   891d 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.
dcbronco  +   891d 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.
Felinox  +   891d 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.
xXKingofStingXx  +   891d ago
Cool idea i suppose but this guy is known for his BS.

I mean, how do you keep a job when 99.9999999% of the time you get everything wrong?

I know it's a prediction, but sooner or later your employer HAS to get tired of you being wrong.
#6 (Edited 891d ago ) | Agree(4) | Disagree(7) | Report | Reply
MasterD919  +   891d ago
What the hell does Pachter do exactly? I mean besides make ridiculous statements that never come true. $99 with a cable subscription? C'mon Pachter...lay off the paint chips.

We could have a spider monkey do his job and come up with better predictions.
#7 (Edited 891d ago ) | Agree(3) | Disagree(3) | Report | Reply
TheLyonKing  +   890d ago
He is a Market analyst and a lot of his Market is in the gaming industry as well as other.

His job is to look at current trends and predict game sales, future console pricing etc. Companies also come to him for advice and he gets to play free games.

No one can predict the future his job is to guess by researching on going trends. The hate he gets is so unjustified.
DivineAssault  +   891d ago
I HIGHLY doubt it.. It might be $250 with a subscription.. Screw that tho.. Im buying it with no strings attached.. If i get one
ChunkyLover53  +   891d ago
I said the same thing when I heard about this subsidized Xbox 360 deal. Doesn't mean I'm an analyst, but it is a smart idea by Microsoft.

I can imagine a lot of people will be willing to part with $99 down, as opposed to $299-399.
Dlacy13g  +   891d ago
I will say it right now...if the next xbox or even PS4 is $99 and a $15 a month 2yr subscription I am more than fine with that.
vega275  +   891d ago
i just hope they offer this as a option as well as just buying it straight up. but i can also see people that are on a fixed budget going for this.
Arcanine   891d ago | Immature | show
PixL  +   891d ago
It'd mean Microsoft is finally sticking to their own US market only.
KMCROC54  +   891d ago
Am sure this list of cable providers outside the state would be intrested in this concept if sold to them rigth, so as for them sticking to US Market only is pure rubish.

http://en.wikipedia.org/wik...
bobshi  +   891d ago
How good is US cable coverage? I don't think the UK's is good enough for this model.

I could easily see it happening with an IPTV provider like BT Vision, however.

Microsoft Mediaroom already runs BT Vision's set top box.
#11.1.1 (Edited 891d ago ) | Agree(2) | Disagree(0) | Report
dcbronco  +   891d ago
There might actually be a disc-less version as rumored. It would be perfect for casual gamers that would mainly use it for cable. Plus London has over 7 million residents. If you got a good portion of them using a 720 or just the set-top box it would be a lot of money.
PixL  +   891d ago
Next time do a better research than googling a wiki page. Cable Internet has nothing to do with availability of streaming media services. In most of Europe (and probably the rest of the world too) Microsoft offers NOTHING in that area.
KMCROC54  +   891d ago
@PixL my response was directed at the fact that this person assumed, that the us market is the only cable providers that they would sell the idea of Xbox being the TV top box. yes the US cable market has better structure of support. but that's not to say Europe cable providers can not address these issues before this concept takes off. as for the wiki page could not recall the names of cable providers. as for MS not offering anything oversea , that can change look at America the country that never had a president of color but has one now meaning thing can change
I can't wait to see next gen consoles. Some laughable things are beginning to happen. I wonder if Psn 2 will be free since they want to compete with xbox live.
#12 (Edited 891d ago ) | Agree(5) | Disagree(0) | Report | Reply
badkolo  +   891d ago
its a smart way to get more early adopters who would normally wait for the price to drop.
greenpowerz  +   891d ago
Optional day one price drop(if you allready pay for other services of course, which most do) This type strategy wouldn't be fair to the competition and would cause death if the others didn't design their consoles from the ground up as a home entertainment system.

I predicted this years ago but was wrong about which generation. I thought MS was further along with partnerships and software tech but I guess deals and hardware wasn't there.
MS tested the waters with streaming apps. Read a bout talks of cable Companies buying Xbox 720's(then 360) and offering them as rental options. Would be much cheaper for a company like Comcast to use the console because new HD 3D set top boxes cost $600-$800(DCX3400-m and up)
The console set top box would be massivley more appealing to consumers considering Comcast and others wont disable certain functions and services due to copyright issues etc.
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dkp23  +   891d ago
I would like to see a list of his predictions and success/failure rate.

I am leaning towards more on the failure rate.
goldwyncq  +   891d ago
The guy was probably smoking when he thought of this.
bobshi  +   891d ago
This won't be the only pricing option, you'll still have a one-off fee option.

Don't forget the leaked document did mention similar TV things and the inclusion of a DVR and it is also clear from the document that Microsoft is aiming to be the only box in your living room.

It can't do that without 'decent' live TV.
Dlacy13g  +   891d ago
Bobshi, if they design the next xbox to have similar functionality to the current set top cable boxes... what would stop them from going to a Comcast and saying let us being your set top box provider? How do you think they get their current boxes from Motorola? I mean its the same principle... Motorola creates a box and partners with a Comcast and provide units to Comcast to put out. They get a cut of the comcast montly subscription bill, and depending on the "deals" you may pay a 1 time installation fee which I am sure a portion again goes to the box provider.

I think the big hang up for everyone is thinking of MS as a Hardware provider. There is more than just Motorola making cable boxes so why not a robust box that does more than just cable tv? But I think it is a legitimate point to bring up. MS has begun dabling more and more in hardware but they don't have that proven track record yet if you ask me.
#16.1 (Edited 891d ago ) | Agree(0) | Disagree(1) | Report | Reply
Dlacy13g  +   891d ago
I have to admit the writing is a bit on the wall with this one. MS has been slowly trying to move the Xbox into more of a set top box that could be put in place of your cable box...but to do that, they need to have a box that is in fact a cable box that the cable providers are going to want to partner with them for.

Cable providers are shaking in their boots as to what to do about the emerging markets of Netflix and the like for online streaming content. Cable TV as we know it is dying and they are trying to find different ways to compete. The reality is that Cable providers are as much TV providers as they are internet providers...and Internet is the way moving forward... So they look to someone like MS...give us a box that we can program in our cable tv service to, gives users access to the internet and gaming... all through the TV using the existing cable / internet subscription that we all have become used to.

At the end of the day guys, there is a reason why Comcast and Verizon have created "Apps" for the 360...and lets not forget AT&T actually has a portal to allow the 360 to be a 2nd unit.
jjb1981  +   891d ago
I'm still too busy with the 360 to care what pachter says. He's hot garbage
Kran  +   891d ago
The funny thing is, I think Pachter is just joking because the Xbox is turning too media orientated and is joking its not going to be a games console and I think people are thinking he's serious here...
stage88  +   891d ago
Oh, Patcher made another BS sandwich?
#20 (Edited 891d ago ) | Agree(0) | Disagree(1) | Report | Reply
SITH  +   890d ago
Haters gonna hate.
I got to admit right or wrong, people have been knocking on patcher on this site and small few others all the time and for a long time. What seems to escape the lot of you, he is still employed wedbush securities entertainment software publishing and retail sector. If what he does was so easy, then why is he getting paid to do it and you aren't?
jjb1981  +   890d ago
Booooo...
Tacklebait  +   890d ago
Microsoft have been giving away a free 4 gig console with a 3 year subscription of TV/Internet through telus for a bit now here in Canada.

Seems pretty plausible.
Tzuno  +   890d ago
hmm testing peoples reactions :) i know you there weasel.

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