xbox one11111111111111 -
xbox one11111111111111 -

The Xbox One is priced too high, pricing expert and author of 'The Art of Pricing' Rafi Mohammed has told Bloomberg.

"You want to get that console in consumers' hands, and then where you really make the money is off of the games," Mohammed said. "So it was really surprising that they charged such a premium, especially when they had a lot of negatives... like the very restrictive DRM, which they did retract from."

He added: "One of the key things is that they really listened to their consumers and they did backtrack ... but I still think the price is too high.

Xbox One's £429 RRP comes at an £80 premium over the PS4.

Mohammed believes Microsoft has the ability to reduce the price of the Xbox One by pulling Kinect out of the bundle, but the platform holder has insisted this won't happen because of its integration in the experience.

Both consoles are expected to arrive this November. Analysis

It's not difficult to see that it was pricing which helped Xbox 360 gain a foothold in the market when the PS3 was priced too high for many. Yet in the next generation, Microsoft appears to have allowed the tables to be turned. However much value Microsoft believes the Xbox One offers, selling this to consumers could be a struggle.

Source: Bloomberg via Gamespot

New stuff to check out


To add your comment, please login or register

User Comments

1tch's Avatar


Do people forget Sony launched the PS3 at $600?
Posted 09:11 on 25 June 2013
1tch's Avatar

1tch@ ShadowmanX5

Microsoft was successful because Gates licensed the use of Windows as opposed to Jobs who made Apple completely proprietary.
Posted 09:10 on 25 June 2013
1tch's Avatar


Microsoft is basically making the Kinect part of the system. They're pretty much one in the same. I think people need to let go of the price match against Sony and realize they're getting an amazing value at the XBOX ONE's current price point. Wait until they reveal IllumiRoom.
Posted 09:07 on 25 June 2013
dracx's Avatar


I think it is quite over priced. I think $399.00 is a more acceptable price.
Posted 03:57 on 25 June 2013


It is an unreasonable price because Msoft have not had the savvy to justify it. if you look deeper and think more then it becomes more acceptable. (A bit)

Firstly Msofts vision of the next gen is expensive because they want the kinect to be integral to the experience, therefore it is a requirement and due to it's technical sophistication is not cheap, hence the main reason it is more expensive. Dont forget that the PS4 price does not include the eye. They need to make the kinetic worth having though.

Secondly, the xbox has all sorts of extra bits of tech integrated for it's various media, operating systems, multitasking and entertainment options. The PS4 is focused primarily on gaming and it's architecture reflects that. As a consequence price is lower.

Thirdly, XBox live ha been invested in heavily, with thousands more servers etc being used. As good as xbox live is now, I think think service will improve greatly with the next gen, but again this costs money which Msoft will try to recuperate on console sales. Sony have also invested heavily in the PS network to improve the service and there model to deal with the business expense is to make subscription mandatory for online play.

They should come down in price a bit though, and if they include say free gold membership for 6 months then the value becomes more understandable.
Posted 00:05 on 25 June 2013


Have to admit, if MS can sweeten the deal with something like Xbox LIVE and a Kinect bundled game (which I still believe is RARE's new Kinect game) then it's a bit of a tough sell in my mind
Posted 23:36 on 24 June 2013
ShadowmanX5's Avatar


I'm quite surprised Microsoft are taking this route, as my dad has told me, the marketing behind the Xbox has been their model for years. Get the product out there cheap, then once it's popular start making money off the "services". This is partly (I use that term very loosely) why Windows is so popular and also the same with the Xbox. Also as said before, the Kinect is a hard sell to those who really just don’t see the point in gaming without physical buttons (myself included ^_^).
Posted 17:43 on 24 June 2013
Bloodstorm's Avatar


You don't need an expert to tell you that.
Posted 16:36 on 24 June 2013
Im_Dave_Angel's Avatar


The U-turn on DRM is good for those that were unsure, but the price is something they really cannot change or are not willing to compromise on.

In which case, gives us more value. The early adopters of the 360 got a media remote built-in, so why not include a media remote and a second controller in the box?

Don't compromise the price MS, but give us more value.
Posted 16:19 on 24 June 2013


There will be some who move over to Sony because of price and some who move because of the DRM/no DRM issue (minds are easily swayed) but I suspect that there will be enough Xbox fans to still provide some pretty good sales figures at the end of the day.

As much as it will be down to price for those yet to make up their mind, it will also be down to the release date and advertising/PR for the general public who don't frequent these sort of site and just get their gaming news from TV ads, newspapers and Gamesmaster.
Posted 15:56 on 24 June 2013


Couldn't agree more. A lower price-point will win out most of the time if the product is perceived to be similar. Including the Kinect as a value proposition, when it's something that very few gamers see the value in, is a hard sell.

Sell a cheaper (on par with PS4) version without the Kinect, and include a "must-have" game with the Kinect bundle. If there is no "must-have" game for Kinect, then you're back to the issue of perceived value, so thrifty gamers will get a PS4.
Posted 15:32 on 24 June 2013
View Full Site