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Xbox One disc-free console – analyst weighs in on rumor

VG247 :
Last night, a rumor surfaced that Microsoft was preparing to release a white 1TB Xbox One at retail, without a disc drive. Today, Wedbush Morgan analyst Michael Pachter has called the idea “dumb, dumb, dumb,” yet has also dismissed it as a complete rumor.

“If this rumor is true, it is one of the dumbest ideas of all time,” he said. “It would alienate GameStop and other retailers, and it would demonstrate that Microsoft can afford to release a 1TB Xbox One at $399 with essentially the same production cost as the $499 model with a 500GB HDD and a Blu-ray drive.

“That would likely cause gamers to believe that the model with a Blu-ray drive is overpriced, or would cause them to believe that Microsoft is greedy.

“I have three words for this idea—dumb, dumb, dumb.”

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Kayant1295d ago

I have to agree with him here.

Kingthrash3601295d ago

i rarely even listen to this guy ...but he is on point on this subject.

cleft51295d ago

This would confirm what a lot of people already suspect. That Microsoft has every intention of bring back their DRM policies. It would alienate a lot of people, the only question is if Microsoft believes they can get away with it. I think they do believe they can pull this bait and switch and still be successful.

Crap like this is why I refuse to buy the Xbox One, not because Microsoft isn't going to have great games for the Xbox One. If you think only games matter than you are very naive. A company's policies is what matters, I would feel the same way if Sony was pulling the low stuff Microsoft is currently trying to pull.

FarEastOrient1295d ago

With games getting bigger and bigger... Countries that allow their ISP to have data caps like Canada, EU, Australia, NZ are screwed. In the States e.g. Comcast already has a 250gb written into the contract for terms of service. Which isn't currently on, but monitored to see if you are an extreme case (like 400+) and they'll shut you down.

UltimateMaster1295d ago (Edited 1295d ago )

If it's so dumb, then why is Steam Machines coming and people want them?
Steam Machines can't read discs either.
Steam is a great service.

Let's face it, everything is going into the clouds, check the music industry these days.
Check how Steam is successful and what PS Now will bring. It may not be that dumb.

They did say they wanted to make a console that's always connected to the internet, this would be it.

UltimateMaster1295d ago

But the thing that I still don't understand is why don't they just bring Xbox to PC already?
PC would download their games, why not impose Xbox on all of it's Windows rather than make the Xbox. I mean come one, even the Interface looks alike. Except you can do more with a PC.

I don't know, I just don't see why they still make Xbox when clearly you'd be better off with a PC.

Kidmyst1294d ago

For once I agree with pachter. Not to mention if this Net Neutrality crap goes through and providers could charge more for streaming and downloading large files, disc drive free consoles won't come anytime soon.

mewhy321294d ago

Well I don't think that a discless version would do much for the brand. However if you didn't have that 'forever' waiting period for the bone to crawl along trying to get the game installed from the disc like it does now, then it may be a good idea. PS4 has you up and going in just a minute or so. I'm not sure why ms can't accomplish the same on the bone?

+ Show (3) more repliesLast reply 1294d ago
nrvalleytime1295d ago

Yep. He's like artillery - keep throwing enough shots out there, and you're bound to hit something.

He's right on here though.

reaperofsouls1295d ago

a disc free bone ,that drm because you can't trade in games if you download them

Eonjay1295d ago (Edited 1295d ago )

I agree. GameStop would wash their hands of them and Microsoft would go from earning revenue on the console to losing money @ 399 if they keep Kinect. It doesn't make sense for either party.

Blaze9291295d ago (Edited 1295d ago )

Meh, why's it such a bad idea? It allows Microsoft to have a similarly prices sytem at $399.99 USD while STILL offering Kinect with every Xbox One console.

"It would alienate GameStop and other retailers"

Who is saying the $599.99 DISC Xbox One console would cease to exist? Could they not serve both SKUs?

It also allows them to somewhat return to their original DRM plan with the uselessness of disc. I mean they built a whole system around it, you think they were just going to abandon the whole idea? Neither the PS4 or Xbox One uses discs besides the initial load up verification and installation.

So why have it?

If all you really care about is gaming and appeal to a digital future, then it'll be right for you. The Xbox One as it was truly meant to be. And you still have tons of media apps and Xbox Marketplace for Video and Music to replace your physical media needs.

So all that for $399.99, why is it an issue?

LeCreuset1295d ago

Why is it a bad idea?

1) For all of the reasons Pachter stated.

2) There's just something, "I don't know," about an all in one device that can't even play blu-rays and DVD's.

3) Even if they overcame all of that, Sony could just follow suit by releasing a $300 PS4 without the Blu Ray drive.

Eonjay1295d ago

its a bad idea because they would sell at a loss. The blu ray drive isn't that expensive. Also, Its a bad idea because as Patcher said, it would alienate GameStop because they wouldn't be able to make money by selling new games for the console, or used games. That a wonderful way to get the biggest game distributor to promote your competition. So Gamestop loses sales and each Xbox would be sold at a loss. As a consumer there may be benefits; but I assure you Microsoft and GameStop are both thinking about money too.

A better idea would be to get cost down and release with 1TB at 499.99. That would be twice the capacity of a PS4. It would make the $100 price hike more acceptable.

Blaze9291295d ago

@LeCreuset lol and those, are you're reasons? Okay.

ziggurcat1295d ago (Edited 1295d ago )

it's a bad idea because it's a sneaky attempt at re-introducing their DRM policies by essentially eliminating the ability to sell, trade or borrow games.

which no one wanted to begin with (the DRM policies, that is...).

edit: and unless they actually allow people to replace their HDD, the 1TB is going to fill up fast.

Sleebs1295d ago

Geez, really, dude? It's dumb because on one side, the initial Xbox One console IMMEDIATELY becomes obsolete; therefore, alienating those buyers. On the other side, as Pachter explains, it alienates retail companies. Either way, Microsoft messed up here if the rumor is true.

maniacmayhem1295d ago (Edited 1295d ago )

How would it reintroduce DRM when there would be two type of sku's on the market. Obviously if a consumer picked the drive-less one then they obviously would know they are going all digital.

So how is it a "sneaky attempt at re-introducing their DRM"??

You think if they released a drive-less Xbox MS would immediately stop selling retail games?

And I thought Gamestop was the enemy? How would MS be alienating Gamestop? If anything this would put control back into devs hands and out of Gamestop's who promote used games more than new.

LeCreuset1295d ago

"@LeCreuset lol and those, are you're reasons? Okay."

I see. My mistake was in trying to explain to you how that wouldn't make sense to anyone but a blind loyalist.

KingDadXVI1295d ago Show
rainslacker1295d ago

If they give the option between a disc-less system and the current full version then I see no problem with it. Probably not the best thing for MS. Sony tried the same thing with the PSP Go, and well, we saw how that went.

Not saying there isn't a market for it, but I doubt it's going to be a huge seller.

The thing is is that it doesn't make sense to offer that version cheaper. The Blu-Ray Drive itself isn't worth $100 to manufacture. MS would be losing more money on every system sold, and when compounded with having to market two separate SKU's, they would lose more money for what currently a rather niche digital only market. Digital just isn't up to par on consoles yet for it to be like what Steam is for the PC.

That being said, if MS goes with only the disc-less version of the system, then all the things that people say will happen is probably true, at least in some form.

Darrius Cole1295d ago

@KingDad

As wrong as wrong can be.

Having used games market lowers the entry point for video games, which brings in more money for the entire industry.

What will be disaster for the industry is if people are able to trade their digital games. That will reduce the number of copies necessary to service the population by 80 or 90 percent. It will not happen in our lifetime.

ziggurcat1295d ago (Edited 1295d ago )

@ maniac:

a new SKU could mean the beginning of potentially phasing out the original xbones.

+ Show (8) more repliesLast reply 1295d ago
3-4-51295d ago

As an owner of an xbox and a 360, I kind of hope they do it, and it backfires just so they are forced to learn their lesson the hard way.

They kind of need to at this point.

I just don't think they are on the same frequency as gamers anymore like they used to be 6-7 years ago.

parentoftheyear1295d ago

I don't think anyone would ever think Microsoft is greedy. /s

ExtoVert1294d ago

many people aren't realizing that MS are trying to sneak in their DRM policy with this disk less model. Digital games dont bother me it was all the restrictions they would have put on me was just ridicules.

+ Show (5) more repliesLast reply 1294d ago
XiSasukeUchiha1295d ago

I do agree as well dumb, dumb, dumb!!!!

maniacmayhem1295d ago (Edited 1295d ago )

I agree that would be stupid to do that, but then again...MS did try to pass off DRM for their console and this was after the huge backlash that happened with Sim City and EA. But I'm positive that their DRM push was Mattrick inspired, with him gone and calmer, smarter heads at the helm I'm sure this is only a rumor.

now if they would come out with a white X1 with a 1TB HDD with a blue ray drive for 100 or 50 bux cheaper I would definitely consider picking that up.

KillrateOmega1295d ago

I gotta agree with him here. That would be pathetically moronic.

Mikefizzled1295d ago (Edited 1295d ago )

I don't think they care if they lose money on this model. If you cut out retailers they will get higher cuts from digital purchases. And it also aligns with their previous view of used/rented games.