While it was only earlier this year that Microsoft unveiled its new subsidized Xbox 360 pricing model – which allows patrons to procure the console for a lower retail price, but ties them into a monthly subscription plan – and it’s only currently expanding past the test phase, it appears that the option might be here to say. More than that, though, it looks like Microsoft might be keeping the subsidized pricing model for future Xbox generations.
For those that might not be familiar with the offer, it essentially provides anyone interested in an Xbox 360 the opportunity to purchase one for $99, with the one caveat that they agree to a $14.99-a-month charge for Xbox Live for two years. Any who purchase the console must first undergo a credit check, but once approved they can get a 4GB Xbox 360 and Kinect for the cheaper price.
At first this appears like a rip-off considering an Xbox Live Gold subscription costs $59 a year, but it’s the ability to push off the immediate payments that is the real draw. Let’s face it; even though consoles are coming down in price with every shopping season, they’re still an extremely expensive proposition. But what if with the next generation they didn’t have to be?
That’s what Microsoft General Marketing Manager Matt Barlow is suggesting could happen with the Xbox 720 – a more affordable subscription model that alleviates the initial sting of new console price points. While his claims don’t suggest this subscription-based pricing model will be the only way to purchase the next Xbox, he does say the option is here to stay, and is “pivotal to [their] business.” Meaning that if it gets the console in the hands of more consumers faster, then Microsoft is willing to try it out.
And for those that have yet to take advantage of this ‘Entertainment for All’ Plan, Microsoft has announced several new options for this holiday season, including a 250 GB Xbox 360 with Kinect for $149.99. At the moment, these specially priced consoles are only available in Microsoft stores (of which there are very few), but pretty soon the plan will be expanding into major retailers like GameStop, Best Buy, and Toys ‘R Us.
The expansion begins on October 28th with GameStop and expands to five total US retailers by November 2nd. For full details make sure to check out Major Nelson’s post on his official blog. As far as an Xbox 720 price point or subscription option are concerned, look for major announcements to be made at E3 2013.
Do you think it would be smarter for Microsoft to offer the Xbox 720 with this subscription model to make the price point seem more affordable? How expensive do you think the next generation of consoles will be?
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Source: Wall Street Journal, Major Nelson
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I actually like this plan. Not only are you paying for live but you are paying the rest of your consul as a whole. It just seems fair (IMO). I definitely would be willing to try this out for the 720.
$460. That’s what you’ll pay. Deferred payment plans always end up costing the consumer more money in the long run. Yes it helps offset the cost initially, but paying full price up front lowers your monthly Live cost to normal levels.
Sounds good on the surface but ultimately this will make more money for Microsoft.
Yeah now its more money but if they did the same plan with the 720 it would be worth it.
Make more money for Microsoft? You say that like Microsoft is evil for wanting more money. It’s a business, that’s their job is to bring in higher revenue. True, while it may cost more in the long run, it is easier for most people to make several small investments than one large investment. I would love to see the new Xbox release for $100-$200 and force a monthly payment. Sales would be off the charts.
Pls dont state the obvious “that’s their job is to bring in higher revenue”. Everyone knows that a corporations first and foremost responsibility is to return profits to it’s respective shareholders.
This subscription model, while lower initially, will only cost more over the life of the product, and for two reasons: 1) initial deferred pmt; and 2) the fact that most ppl will continue to pay $15 monthly even after the two yr term has expired.
While they may claim that this is “better for the consumer”, the reality is Microsoft, along with nearly every other company, is rapidly moving towards a subscription model. This ensures they’ll have a predictable, and reoccurring, revenue stream – and that’s the ONLY reason they’re doing, because if they really wanted to “get more into the hands of consumers” they’d actually make it less expensive.
And let’s face it – if you don’t have $300-$400 on hand to purchase the system and accessories you shouldn’t be financing the system because you can’t afford it. Period.
kind of like buying a car
yall so lame waisting your time on a stupid ass website
And you’re not? You took the time to come here. Don’t be a Hippocrate. If you even know what that word means.
I’m not on his side or anything, but you technically spelled hypocrite wrong…
Lol I figured as much. I’m too lazy to fix it though.
got your ass on hush mouth bitch
Lol this guy has obviously had some sort of mental brake down during his life.
Someone ban this idiot already.
My job is prepping for PS4 and Xbox 720 this year but not saying anything for fear of leaks. Watch, holiday 2013.
What? What job do you hold that requires you to prep for next-gen consoles? Are you a dev or something?
I wish. I work, security, if you will.
Nobody would believe me anyway.
So, a security guard at a dev? Or GameStop?
I can only assume the price point for the new system would be on the high end if they are testing out this plan now. I’m curious to see how retailers would adopt this idea. And just so I’m clear this next xbox is definitely going to be called the xbox 720 correct? Or are we just calling it that for an identifier?
I’m thinking the new system will be between 400-450. Considering the Wii U deluxe is launching at $350.
Some might call it “blackmail”, “embezzlement”, or “kidnapping”.
I think it’s one of them…hmm…oh, yea; it’s all of them.
Class dismissed.
Kirk, out.
Who would fall for such an idiotic scam?! Yes you get Xbox live but its $460 for an unreliable machine! Im a huge Xbox fan, Im on my third console now but even I wouldnt fall for that!
Id rather just buy the console for the full price (preferably at a discounted price via coupons or deals).
Doesn’t Phone providers do the same thing? Those with Smart phones know what I am talking about. Phone original cost $900. With 2 year contract $399 for a 2 year contract that for my bill(2 phones) about $199-$220 a month for 24 months. That’s pretty much the same thing that Microsoft is doing but with a different product.
Not real keen on the idea. If they can convince most consumers to switch to a new way of paying, monthly. It will be much easier to crank the monthly cost up even when Microsoft has no additional overhead. I want the ability to buy up front and pay a low as possible for the online component (Xboxlive membership).
How about if you can’t afford to buy an xbox, you don’t get one. Some people have no self control.
why do you think this country is in so much debt no self control. from the individual to the state all the way to fedrel
I’d rather save and buy complete and spare myself the hassle of devoting an extra 15 bucks every month, especially if ends up totaling more in the long run.