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Submitted by lepolohuevo 964d ago | news

Microsoft defends Xbox One $500 price point--"We're over-delivering value"

Microsoft's Xbox boss Don Mattrick has spoken out to defend the Xbox One's $500 price point, saying the company is in fact over-delivering value with the next-generation system.

"It's a lower number than some of the analysts had forecasted," Mattrick said on Bloomberg TV. "We're over-delivering value against other choices I think consumers can get. Any modern product these days you look at it [and] $499 isn't a ridiculous price point. We're delivering thousands of dollars of value to people, so I think they're going to love it when they use it."

Competitor Sony will offer its PlayStation 4 at $400 this holiday season, but Mattrick believes consumers will choose Xbox One for its suite of exclusive services and applications like an improved Xbox Live, as well as Skype, Twitch TV, SmartGlass, and Kinect.

"We're really making the living room your center of fun for your family," Mattrick said.

Every Xbox One will include a Kinect 2.0 sensor, while PS4 gamers will need to pay $60 to purchase a PlayStation Eye camera. (Microsoft, Xbox LIVE, Xbox One)

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Sharius   964d ago | Trolling | show | Replies(1)
Ezz2013   964d ago | Bad language | show | Replies(11)
Mr_Nuts  +   964d ago
God how arrogant, they make Sony in 2006 look normal.
Convas  +   964d ago
Nope. MS says stick with a 360 if you've got no internet, Sony said I'd need two jobs.

Sorry, both are equally arrogant and inconsiderate and Sony did not, does not, nor ever will sound NORMAL in regards to those comments they made at the start of this generation.
Mr_Nuts  +   964d ago
But was it worth the end

People laughed and criticized blu ray...and I'm glad they put it in because we got games like Uncharted 2, God of War 3, Last of Us etc. Even at the time blu ray players were really expensive so looking back I don't mind paying that much.

That whole "stick with a 360 line" among other things MS have said are just dickish in my opinion. I mean Sony said the whole get two jobs thing but MS's mouth has just not stopped blabbing and insulting their core fanbase so you know, looking back Sony then looked like saints compared to the MS as of now.
dedicatedtogamers  +   964d ago
"Sony said I'd need two jobs. "

Actually, no. They said you'd want the system so bad that you would be willing to work more hours. Still a jerk thing to say, but nothing compared to what Microsoft has been saying.
insomnium2  +   964d ago

Thank you for the correction. It's unbelievable how people have spun the things Sony said back then. Imo the weren't even that arrogant. Just your typical PR talk.

Kutaragi with his Karate master talk was in the same class as this "stick with the x360". The difference however is and was that Sony targeted MS with their talk, MS targets their fanbase. Imo it's atleast 1000 times worse o talk down on your fanbase than it is to do it to your competitor but what do I know, that's just me. I've been called a fanboy for this many many times.
PS-Analog  +   964d ago
I think Mr Nuts is also refering to other statements like "The console is worth thousands", The submarine quote and the internet quote wasn't put like that it was more like "We have a device that works offline, its called a 360". That just a snidey remark.
Dee_91  +   963d ago
That box design is pretty epic.
Ritsujun  +   963d ago
Awww... stop crying, Don Patrick.
_QQ_  +   964d ago
What they are offering actually is a good deal on paper,considering kinect 2.0.The problem is nobody wants kinect, it should be a side option.
NewZealander  +   963d ago
i think the price is great, i expected both consoles to cost far more, in fact here in new zealand i can buy BOTH consoles for the same price that the ps3 was at launch!

both companies can be incredibly arrogant, but at the same time words tend to get misconstrued on the internet, people tend to fly off the handle over comments that probably arnt meant with the level of malice that people take from them.
MWong  +   963d ago
I don't think anybody can misconstrued, "if you don't have an internet connection, we have a device for you it's called 360."

I cannot believe that every game on the XBone will be multiplayer. So why would I need an online connection with a single player game. Or why the hell do I need to pay $500 for a console and then check in at least once a day, like I'm on parole.

That's my biggest annoyance with M$ this generation.
NewZealander  +   963d ago
i agree and understand why people have issues with the always online thing, but at the end of the day its just a console, and im not going to let that ruin my experience when it comes to playing games.

yes i think microsoft should change it, although i own both current consoles and prefer xbox i am not a fanboy, and despite my preference i have done all i can to help the cause on and twitter etc, i do believe the gamers should stand up for what they believe in.

but ill still be getting both consoles regardless, both will have great features and exclusives, and like i said the price isnt that bad, people pay more for a smart phone! the ps4 here is half the price the ps3 was at launch! ps3 costed $1200.00 ps4 costs $649.00 XBOX1 is $740.00, the same price the 360 was at launch.
we in new zealand pay higher prices then most of the world, yet these prices are still great.

if people want microsoft to listen this isnt the place to do it, spam major nelson on his blog or twitter, sign up on xboxshun, facebook or whatever, theres plenty of places to protest.
Picnic  +   963d ago
It's got Kinect - which, like Sony's Move and Eye camera would normally cost money - and Skype.

Those alone make the price very competitive compared to the PS4.

Although the launch all about television was a bit ludicrous to me. What is this- the 1950s?

But, in the long run, just about the only main reasons to think that the PS4 is so much better is if you happen to prefer their exclusives and controller. Or if you think that Playstation Plus has and will offer better value.

It's easy to see any console nowadays that 'only does everything' as an arrogant gesture but I think that people are going way overboard. It's really that used games policy that put many people's backs up but that's of no concern to me when I decide whether the XboxOne or the PS4 is offering the best games and control systems to play those games.

If Microsoft throw in some interesting new franchise in to the works, I'm not going to be grudging about the XboxOne just because I owned a PS3 this time. I might want to play that new franchise.
#3.4 (Edited 963d ago ) | Agree(3) | Disagree(1) | Report | Reply
MadMen  +   963d ago
LOL you could never make SONY in 2006 look normal, EVER.

But this load of BS from MS is lame. They forget not everyone wants the cam.
alb1899  +   963d ago
Considering that 8 year ago the 360 launch was 399 a ps3 599, I'm impress that the X1 is 499 and more impress that SONY is 399.
What I think is that SONY had advantage because they new the price of the X1 and saw the games that Microsoft offer so they new that they have to put the price down.
The price is good for both!

Do you think that Microsoft will put the same price if they new?
If Microsoft new then the story could have been the opposite.
Mikelarry  +   964d ago
they do love to throw that word around value. how can it be value when you are forcing users how are not interested in parts of the console and and being forced to pay and call it value
vitullo31  +   964d ago
Thousands of dollars of value LOL hilarious
#4.1 (Edited 964d ago ) | Agree(22) | Disagree(2) | Report | Reply
Heartnet  +   964d ago
Forced? no1 is forcing u yo buy the console lol

Like saying i dont want the DS4 but sony is forcing me to buy it jeez why cant they just knock of the 54£ ffs...
WalterWJR  +   964d ago
Well considering a lot of people who would like xbox one without kinect, to them it is forced.
#4.2.1 (Edited 964d ago ) | Agree(21) | Disagree(2) | Report
Mikelarry  +   964d ago
Kinect is a forced add on you know it and i know it so stop acting like it is not.
jmc8888  +   964d ago
That is absolute crap.

You're comparing to a NSA spying device in Kinect to an actual controller.

Why don't you sell your car and buy some old fashioned roller SKATES.
rainslacker  +   963d ago
They aren't even calling it added value. That's what supplemental features on a game console are...added value. They really are not focusing on games for this.

PS3 was a game console first. The added value(although arguable) was that they were offering the best blu-ray player on the market, for roughly half the price of other blu-ray players on the market. It also offered several media features which were in their infancy for the TV at the time(such as streaming from PC).

All this added value in X1 isn't being asked for. It's already available in abundance through much cheaper options. It may be convenient, but it's like throwing a bunch of attachments onto a vacuum cleaner. Basically all a vacuum cleaner has to do is suck up dirt from the floor, those attachments ability to perform it's intended task is dodgy at best.
alb1899  +   963d ago
Is the same with every product you buy this days, tvs, phones, tablets, cameras.....I mean every product has features that you don't want but you have to pay for them.
Picnic  +   963d ago
Because if you're not interested in the Kinect 2.0 part of the console then you're not... actually all that interested in the console in the first place.

If you're not someone who likes a bit of colourful fun from time to time in your games then you'll probably be growling at the XboxOne with your state of the art PC and ultra serious games in any case.

So it makes perfect sense for Microsoft to make the Kinect 2.0 a required part of the console as a selling point over the PS4.
swansong  +   964d ago
MS pr protocol, Put foot in mouth.
xYLeinen  +   964d ago
I totally agree.. Most of you buy tablets and smart phones every year and they usually got the same price point or more expensive than the Microsoft Xbox One. Did I mention we buy those gadgets every year?

We now get a new PS and a Xbox. I don't care which one you prefer. 500$ for a new console after 8 YEARS is not a lot of money. Grow up and stop whining about the price.
Heartnet  +   964d ago
I love how people disagree with you when they probz own a £500 smartphone and/or an iPad/tablet...
Polysix  +   964d ago
I don't thank you very much! That market is a different (also stupid/sheep based) market.
Gamer-Z  +   964d ago
Its not about the price, its everything else that's wrong with the system.
MAULxx  +   964d ago
I don't buy smart phones or tablets.
I'm sure not buying an X-Bone. Why would I want to flush away money like that?

It's not really the price point, it's the trying to sell me something they want me to have that I do not want. I don't want the kinect, I won't use it so why would I want to plug it in? I have to! I don't want TV & all the dead horse stuff that everyone's been talking about like the 24hr check in & digital only games. There is a disc option but it's really digital. I just don't want it. So yeah, at $400 it would be too much for a digital games only system.

There is no value in having a system that devalues your games. No value in it for me when there is a much better option. There's only value for MS.
#6.2 (Edited 964d ago ) | Agree(13) | Disagree(4) | Report | Reply
TheTwelve  +   964d ago
"Grow up and stop whining about the price" = "Buy a PS4" for most people, and the pre-orders confirm this.
A-laughing-horse  +   964d ago

you must be new to n4g, because that isn't tolerated around here.
RavageX  +   964d ago
Who is this "we" you keep mentioning? I do no such thing. I've had the same cell phone(not a smart phone) for about three years, maybe more.

$500 for a console that offers nothing worthwhile to the consumer except hassles and hoops to jump through to simply PLAY GAMES is not a plus.
Krew_92  +   964d ago
I agree about spending a lot of money on phones, just last year I spent about $550 on a phone... Now that I think about it I shouldn't have. LOL.

Also that's only ME, a rare case, some people still stick with their old phones, me I'm just the type of person who needs the latest gadget. I know it's bad but that's just how I am.

Anyways for most people it isn't about the price, it's about the restrictions it imposes. The phone I spent so much on doesn't force me to be online every second, it lets me share my account with others, which lets them use my purchased games.

Any game, no matter how much people wanted it or are hyped for (Killer Instinct for example) will never change my mind about the Xbox One. Maybe in years to come when the stupid restrictions are defunct, then I'll buy it even for $500.
#6.6 (Edited 964d ago ) | Agree(1) | Disagree(0) | Report | Reply
kenshiro100  +   964d ago
This is also hilarious. I remembered the time people were complaining about the PS3's price. Now the XBox One introduces around the same price, 360 fans are defending it.

BlackTar187  +   963d ago
Also a huge % of people buy in contract phones so they do not cost them $500 out of pocket at purchase.

I know a small percentage does but phones every year and every other year is out of contract but the mass majority of people do not spend 500-600 on a cell phone each year. to pretend that to be fact just completely voids your point.
alb1899  +   963d ago
It wasn't the same price......ps3 was 600......7years ago so it will be like 700 now and the X1 is 500 and that will be like 400 7 years ago.
Relientk77  +   964d ago

Over-delivering Restrictions since 2013
jmc8888  +   964d ago

Giving the gov't your info and the ability to use Windows back door since 1995.

Trust us.
betan21  +   964d ago
M$ stop smoking that stuff.
Relientk77  +   964d ago
Yea, or atleast share greedy M$, geez
joefrost00  +   964d ago
You know said those exact same words 7 years ago
Sony funny the.selective memory fanboys have
vitullo31  +   964d ago
and they learned their lesson have they not

Edit: yeah you guys are totally right sony havent learned a thing.. probably why everyone is so pissed off at them about ps4 and praising the new xbox.. oh wait....
#9.1 (Edited 964d ago ) | Agree(17) | Disagree(2) | Report | Reply
Heartnet  +   964d ago
lol nope...
insomnium2  +   964d ago
Ummm.... BD players were about 1000 dollars back then and YES BD is an essential part of the GAMING experience so....
jmc8888  +   964d ago
Blu-ray had an advantage. It was an HD disc with massive capability.

The Kinect is a spying device, that isn't needed.

The PS3 despite the price was one of the best values in the history of gaming.

Oh it was horrendously overpriced, yet still great value.

Because you got a PS3 and a bluray player. Like you said blu ray players were going for $850-1000 when the PS3 launched.

Except with the PS3 you got a game system too.

All I see with xbox one now are cheap, low power components, with horrible asinine unnecessary restrictions, and the mother of all spy tech in a country that spies on everything and trades data with thousands of companies.

But what the Sony guy said was stupid...the difference is though, Mattrick natively speaks English.
YNWA96  +   964d ago
jmc8888, what happened you? You seem seriously bitter.... just buy your PS4, marry it and live happily ever after. I'm sure the PS4 can be convinced to say yes.... maybe..
RavageX  +   964d ago
Gman0174's post is the sort of post you get when someone can't defend whatever they believe with logic.
TheTwelve  +   964d ago
Sony said it after the PS2 which is the best-selling home console of *all time*.

They still shouldn't have been conceited, but it's understood.

Where Microsoft gets off saying stuff like this is baffling.

#9.3 (Edited 964d ago ) | Agree(10) | Disagree(1) | Report | Reply
from the beach  +   964d ago
I can kind of see it.. games console, smart TV, blu ray, Kinect.

Dunno about "over-delivering" though.
SpiralTear  +   964d ago
You can have something do a million things, but that doesn't necessarily equal "value."
Heartnet  +   964d ago
It does if the sum or those parts is greater than them seperatly.. hell a launch Xbox 360 and Kinect would have you equalling out at the same price as an Xbox 1.

FOr instance a TV is 400 and a dvd player is 200... But together you pay 500... even if the TV was terrible and the Dvd player broken this is good value cause you have saved £100..

Quality of goods is irrelavent.. Otherwise things like Beats (headphones) and Macs etc would all be the best value even though they cost 10x the price lol
Godmars290  +   964d ago
$400 + $200 = ...$500?

Nevermind that I can get a 40" HDYV for $350 and a BR player that upscales regular DVDs for $99.

Not $99.99, but $99.

Hell, my new PC cost less than my damn PS3...
SpiralTear  +   964d ago
This isn't only about monetary value. Value is not intrinsically something tied to the price of the components used to make the product alone.

The fact that you're essentially losing a huge chunk of a major market (the used games market) and also showing significant dependence on Microsoft online servers AND internet providers still stands.

You may be getting a lot of products in the package, but that's not the only thing value is.
Heartnet  +   964d ago

Read it again and read it well and i wasnt using real Prices dude it was a hypothetical example to prove a point

Definition of value

the material or monetary worth of something:
prints seldom rise in value
[count noun]:
equipment is included up to a total value of £500
the worth of something compared to the price paid or asked for it:
at £12.50 the book is good value
[count noun]: North American
the wine represents a good value for $17.95
Godmars290  +   964d ago

Usually when the term "value" is applied it means you're getting something more than what you spend on it.

So far, neither MS nor its defenders have managed to justify the value of losing some established features in exchange of allowing MS to dictate all terms for how you use a product you've supposedly bought.
rainslacker  +   963d ago
The thing about value is that it's all subjective. If someone is looking for a device that offers everything, or even half of what the X1 offers, then yeah, it may have a $500 value to them.

If they are just looking for a game machine, and care nothing about those extra features, then it's possible they won't see $500 in value in the system.

It's pretty obvious that many gamers don't see $500 in value in an overly restrictive console that doesn't even appear to be focused on gaming. It doesn't help that you don't even get to own the software you buy on that system...which actually takes value away from the system....again subjectively.
IQUITN4G  +   964d ago
I'd happily pay 500 or perhaps even more but not all the time I'm barred from playing single player experiences on the basis of some pr nonsense. I don't have to buy the machine though so it's hardly forced on me. Happy to pass though

Fact is they know they can lose a percentage of their loyal customers because the bigger picture will make up for it
#12 (Edited 964d ago ) | Agree(6) | Disagree(1) | Report | Reply
superbhoy   964d ago | Trolling | show
Belking  +   964d ago
First I need to work more for PS3 and now I'm getting over delivered vale.With that being said., i'm gonn be there day 1 for xbox -one. I paid over 600 dollars for ps3 so having this one at 100 dollars cheaper isn't that big a deal to me.
thelaughingwiseman  +   964d ago
Yup, this is the same thing Said about their PS3 debut price. And they out sold Xbox crazy the first 2 years.

Why can't it happen for the XOne? They have a lot of the american market, which is about 150million strong. And they have internet connection.
davidj88  +   963d ago
Simple, because the American market doesn't equate to the overall worldwide sales. Sony proved you could outsell the competitor without needing the majority of US gamers, and now with many US gamers looking at PS4 rather and the XboxOne it's almost a foregone conclusion that the PS4 will be the highest selling console for the whole of the coming generation of games consoles.

That's not to say it can't happen, but with both consoles releasing at the same time (roughly) and the numbers favoring PS4 coming up to launch it's very hard to see XboxOne even coming close to PS4 sales.
Drakesfortune  +   964d ago
"We're really making the living room your center of fun for your family," Mattrick said

I don't want a games console for my family...I want games console for me not in the living room but in my bedroom...

Don may trick you sir are and idiot
ziggurcat  +   964d ago
"Microsoft defends Xbox One $500 price point--"We're over-delivering value"

you just keep thinking that, mattrick...

"Every Xbox One will include a Kinect 2.0 sensor, while PS4 gamers will need to pay $60 to purchase a PlayStation Eye camera."

except the PSEye *is completely optional, and not required to operate the system*... and even then, it's still less than the cost of an xbone... *sigh*
MASTER_RAIDEN  +   964d ago
the only thing youre doing is bundling a console with some cheap, worthless peripheral that no ones going to use a week after they buy the console, and using that to try and justify a ridiculous price point.
Gracchus  +   964d ago
"We're over-delivering value"

It's as if Mattrick thinks he's doing us a giant favour by delivering a console dripping in DRM restrictions, mandatory switch off after 24 hours if unable to connect to the mothership, always on data mining camera and the rest. These MS execs have spent too much time in the MS Richmond bubble of 'connectivity' and 'cloud' thinking and are too far up their own $%&*s to see what a pig of a console they're delivering.
Godmars290  +   964d ago
When Sony used that excuse with the PS3, at the very least they had BR and standalone players which were priced $200 and more.

MS, all you got is a camera that gives the NSA a boner and likely still can't play Steel Battalion on.
from the beach  +   964d ago
Worth noting PS3's problem was launching a year after its main rival.. and it was $100 more than Xbox One is..
AngryEnglish  +   964d ago
Im sure Don Mattrick is the secret son of that tool Steve Ballmer.....
zeroskie  +   964d ago
Relevant video. $500!?
AngryEnglish  +   964d ago
im not anti MS at all, but i really cannot stand Ballmer..... how the hell he got to be CEO of MS is anyones guess, Ballmer himself bring the company down... and Mattrick is the games division version

and this will make you hate him even more so.. Steve Ballmer the ultimate PENIS
#21.1.1 (Edited 964d ago ) | Agree(8) | Disagree(0) | Report
zeroskie  +   964d ago

Man that is one of my favorite videos of all time. I've watched it more times than Ballmer has pit stains.

Edit: Developers! Developers! Developers! Developers! Developers! Developers! Developers! Developers! Developers! Developers! Developers! Developers! Developers! Developers! Developers! Developers! Developers! Developers! Developers! Developers! Developers! Developers! Developers! Developers! Developers! Developers! Developers! Developers! Developers!
#21.1.2 (Edited 964d ago ) | Agree(1) | Disagree(0) | Report
AngryEnglish  +   964d ago
Hahaha thats some serious stinking sweat hog!

Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant! Deodorant!
#21.1.3 (Edited 964d ago ) | Agree(3) | Disagree(0) | Report
RavageX  +   964d ago
Ok, I watched that link that AngryEnglish posted and...

...WTF is wrong with that man? You're telling me THAT guy is in charge of something?
PSjesus  +   964d ago
M$ was stupid by forcing Kinekt in every box,yes if they selling the console alone this well be 350$(less powerful than PS4)
MadMax  +   964d ago
How on earth are they over delivering? You won't let me play used games and force me to sign online to play all my games. Not to mention I'm under surveillance! No thanks, you can keep your oversized VCR. Definate pass for me!
zeroskie  +   964d ago
I'm glad they're sticking to it.
d_dogg2007  +   964d ago
HAHAHAHAHH!!!... wait wait let me catch my breath.. ASHAHAHHAH!! Xbox and value are not synonymous! They never have been, see Sony and value are synonymous! Oh Microsoft I cant wait for you to disappear and take your slanted view of the game industry with you! You are not needed here!
AngryEnglish  +   964d ago
When ever Don Mattrick talk i want to slap my hands on his temples and hold his head still!..... the guys head bobbles all over the place.... watch the bloomberg video... my god! annoying as feck!
smashcrashbash  +   964d ago
Strange.Isn't that what Sony said when they told you the price of the PS3 that people hounded them for years over and that us Sony fans said for the whole gen about how valuable the PS3 is and why it is worth it and how much extra worth you are getting for a higher price? The irony of it all.Now we have Microsoft begging you to see the value of the higher price.
Polysix  +   964d ago
How many more feet have MS got to put in their mouth?? Is everyone at MS now walking on stumps?
evilhasitsway  +   964d ago
I mean hell you can build a pc for the same price and be better off.
SnakeCQC  +   964d ago
thats what they did at e3 lol
manageri   964d ago | Spam
RachelGat54   964d ago | Spam
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