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Xbox Fusion (720) Entertainment Unit to Carry Probable Fee; Winds Up Not Being so Budget After All

VG Republic Writes: One of the rumors that has spread like wildfire since the emergence of the Next Xbox, as we will refer to as the Xbox Fusion according to our earlier report, is that the newest console will be offered in two versions; one that is your typical gaming machine, and the other will be a budget console that will focus around providing consumers with a more casual experience. According to a report by Paul Thurrott about a month ago suggested that the cheaper model would run consumers about $300 and the “gamer” unit would run around $500. As an update to this report, Thurrott took to his Twitter account citing his source claimed that the change to the suggested pricing would take affect on the budget console, and that it would carry a $15 fee a month for online services. The claim wouldn’t be all that surprising considering that the Xbox 360 is already sold at a reduce price point should you commit for 2 years, much like a cell phone, to Xbox Live at a rate of $15 per month. Not only is the price inflated for the Xbox Live Services, but the so-called “budget” console wouldn’t wind up being all that cheap after all.

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stuna11663d ago

I think even the die-hard fans realize this as a inevitable reality. But it might not be as bad as most think!

Hell who am I kidding? Of course it's going to be as bad as most think.

chaos-lockheart1662d ago

Nope die-hards like to give money to MS.

morganfell1662d ago

If you look at the launches this generation you will see why MS feels safe continuing this route. The 60GB PS3 launched at $599. The Xbox Pro launched at $399. But if you take the Xbox and add:

The launch price
Live every year for 8 years
Wifi
Larger HDD
External Next Gen Disc Player

You can see that the cumulative process drove the 360 to over $1000. Even if you added a larger HDD to the PS3 the price is less than $100. And the PS3 has a next gen disc player that has remained relevant.

People, especially Americans easily fall victim to the "cheap now" approach. It's why these rent to own stores and check cashing outlets do so well. In the end the people pay 5 times what something is worth but to them it doesn't matter because "I got mines now."

And they will defend such places because the alternative is the admission that they are less than intelligent for utilizing such businesses.

It would be humorous to browse the nonexistent retirement portfolios of some of these people.

Zcarnut1662d ago (Edited 1662d ago )

Looking at their current "$99 deal" and from what rumors ive read elsewhere, the $300 model and the $500 one should be one in the same. The difference is your "financing" (with a down payment) the "cheaper" one over a two year period.Subject to credit approval,must be over 18,etc.
This article is implying there MAY be two models, a gimped cheapie and a real one. I do not feel that will be the case.I think it will be the same Xboxes, but different ways to pay for them.
And its not paying $15 a month just for LIVE. Part of that is paying back the remainder of the system. Your not really buying that current $99 Xbox for $99. Your agreeing to pay more over a two year period. Also if the authors numbers turn out to be accurate and you can play now for $200 less and only end up paying $40 more over a two year period? Thats not exactly a rip off in my opinion. Its a viable option for some. Alot cheaper than putting the same money on a credit card!

Godmars2901662d ago

Of course the $15 a month isn't all going to XBL when XBL is $5 month. The question people should be asking however is will the standard XBL fee remain $5 a month. Whether or not a console will be under warranty during the leasing period and to what extent.

Zcarnut1662d ago (Edited 1662d ago )

Godmars...Will it remain $5 a month? No one knows. Will the console be under warranty for the two years?I'd guess no as the current $99 deal only has a 1 year warranty. Finally its not leasing hardware.You own it after the two years. If you bought a game system with your Visa and made payments on it for 13 months, what do you do if it breaks then?

Godmars2901662d ago (Edited 1662d ago )

May as well call it a leasing deal since that's what it is.

At least under a leasing deal - from what I knew them as - a console would be covered for the entire two years and a few months after.

As the way things are now - in general - within the first year unless it was certain parts you'd be expected to cover the costs to fix something if there's a problem.

Edit:
What is C-Thunder even talking about?

We're talking about monthly fees. Not yearly.

Zcarnut1661d ago (Edited 1661d ago )

Its not leasing though. With that current Xbox deal, you own the hardware after two years.Your free to pursue a 30-35 Live card on Amazon then if desired.
Go lease a car.Once the payments are up,you return the vehicle.
Doesnt Sony offer deals if you buy a console with their card? If your still paying on it after the warranty expires,do they step up and fix it? Theres no difference really.

C-Thunder1662d ago

I'm actually a little surprised that they'd finance these boxes and only make $40 over two years. It seems like a low return. I wouldn't be surprised if this didn't include Xbox Live, but, I'm also expecting an increase in lives pricing, or possibly a third tier.

Zcarnut1661d ago (Edited 1661d ago )

There are a few objectives in mind by doing that.One is obviously putting more consoles out there.That leads to more game purchases.Another is hoping the "subscriber" buys DLC and other services. Best case scenario is owner retention of the Live services after the 24 months pass.

Jek_Porkins1662d ago

People are confusing the $15 a month fee for the subsidized Xbox's online service as a increase in Live fees, which isn't the case. If they do have a $400 version that you can buy outright, Xbox Live will still cost the same amount as it does now, the only people who will pay more are the ones who buy the subsidized Xbox.

That is what contracts are all about, but people will most likely go in for that, less money up front, but more over the long run. That is why places like Rent A Center are so busy, I know people who've bought an Xbox 360 or PS3 for almost $1000 because they cant afford one up front.

TheSmugCanadian1662d ago

Oh look, more unsubstantiated rumours!

Evil_Ryu1662d ago (Edited 1662d ago )

may 21st cant come fast enough ...so pumped

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