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Microsoft is looking to "break even" with Xbox One sales

Launching a new console usually ends in profit loses for the company who dares to be so bold. Past consoles, including Sony’s PlayStation 3 and Nintendo’s WiiU, had lost money when they first launched; the hope is to earn back the money in game and accessory sales as the years continue on. Microsoft doesn’t see profit loss in their future though; the company has planned to sell their console close to cost and avoid the financial loss that most companies incur.

At this year’s Citi Global Conference, Xbox Chief Marketing Officer, Yusuf Mehdi, stated that “we’re looking to break even or low margin at worst” with Xbox One. Microsoft’s Xbox One is the most expensive eighth generation console to date and with Microsoft needing to justify its console for being $100 more expensive than its nearest competitor, the PlayStation 4, a price cut might just be in the company’s favor.

What do you think – is Microsoft making a bold move by selling the most expensive console, while trying to avoid loss of profits on console sales?

Source: Polygon

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abel920 says:

There is always Next Generation.

Jas00555 says:

They wouldn't have to worry about breaking even if they didn't make you buy the Kinect. While I like it, $100 is a lot of money for someone on a budget. So yes, they are bold, but idk, I still pre-ordered.

If a hundred bucks is the breaking point when spending money on a next-gen console I would submit that person shouldn't be buying the console in the first place.

You will probably be able to get it at amazon with 0% interest financing statements, but still 100 bucks while not a lot of money might be a deal breaker, especially with the ps4 having better hardware and costing less...
This might change if the xbox one or the ps4 suffers from the same flaws as the ps3 such as overheating and poor games available at launch (the latter might not be the case this time around).
I think the first month of sales, with further community reviews, will dictate how the next few quarters will do for both consoles, I personally think it will be a draw, they will sell roughly the same...

ymcpa says:

If there is an issue with overheating, it will be coming from the PS4. The xbox has a bigger case and a large fan inside. I personally would take the kinect over the slightly better gpu and memory. The kinect has a lot of potential future uses. The better gpu and memory won't lead to substantially better games. I've seen enough video cards reviews to know that the video card difference between the 2 console won't make much of a difference in actual game play. The PS4 might have a faster framerate and maybe slightly better effects that most people will never notice when they are playing. 

Im leaning towards the xb-one myself!
Tell you the truth the memory bandwidth might have a 3-4 fps advantage for the ps4 max...
CPU will affect how many enemies and other artifacts you can have simultaneously on a map but given the PS4 and XBOX will share many of the games and while some will not be available for one or the other at launch the exclusivity barrier will eventually drop, except for sony and microsoft studio games... Developers will make sure the tittle is optimized for both consoles
We will not see any difference between the two in teerms of games. The Xb though adds more experiences in one package (TV, apps, and more), but some gamers do not need the extras or do not feel like the extra 100 bucks are worthy of those features.

The way I see it...  Memory bandwidth should be needed for loading textures... with 8GB of RAM...  even if the OSes use 3GB (who knows how much it'll use)... there will still be a ton left for game locic and textures, audio... etc...  the shared pool should negate the FPS issue.  PS4 Might load games faster.. and the GPU might give more frames,,,  but if XBone does 60 frames... I could care less.  The Kinect is necessary... or we'll keep seeing games that are "better with kinect" or have "meh" support for it.   It needs to be part of Xbox... like Wii....  Should they take a loss to make this happen?   yes..  They will make up for it with XBlive memberships ...  XBmusic subscriptions.. and people buying games online instead of gamestop.

peterfares says:

XB1 is less likely to hit 1080p60 than the PS4 is due to the gimped GPU. Both GPUs are gimped honestly, but the PS4 less so. 1080p60 should have been STANDARD this generation, but Microsoft made the hardware weak and forced everyone to purchase a $150 camera and Sony also made pretty weak hardware for $400.

The XB1 will have to fall back from 1920x1080 to hit 60fps in more games than the PS4 will have to.

I agree... but I have a feeling they'll drop shadow detail before they drop resolution..  That's what I did before I went from 8800GT to 660GT.  Even so...  When I play games today... I have 4 cores on an i7  (8 logical) and my CPU is used VERY little.  if CPU usage spikes... it hits 50%...  but hovers around 15-30%...    big deal...   With 8 cores (16 logical?)..  I would see if they could offload more physics and other things to the CPU...  it seems like a lot of the money was put there.   If they dedicate one CPU to the OS, and one CPU to the Multitasked App  (Windows 8)...  that leaves 6 cores...  2 more than I have in my core i7.   Granted that the corei7 is more powerful than the AMD APU... There is also the console advantage...  the Devs know the hardware and the code runs differently on a console than it does in windows.  (it is my understanding that the XBone will have 3 OSes Hyper-V'd ...  the Xbox gaming OS, Win8, and the Hyper-V middleware OS (no idea what they call it...  but the referee .. so to speak between Xbox and Win8 so that it's as seamless as we see in the task switching demo.  All that being said..  if my CPU is taxed 1/4th to 1/3rd with OS, multiple broswers and a game running... I think there SHOULD be plenty of overhead to take more from the GPU.   Since M$ makes the Developer kit,  they should advise the Devs where to alocate more resources to free up the GPU as much as possible.
 
I agree 60FPS should be the #1 priority... and with a simpler OS, plus a slightly more powerful GPU, we should see slightly better shaders on PS4, but a more consumer friendly and instant-on environment on Xbox.  If a person comes to the house of an XBone owner... and IF they did it right...  it should seem like star trek with people talking to the xbox in a normal voice and it doing what it's told.  If it's done wrong... it will be too much of a pain to use and will not have a clear advantage. 

coip says:

Whichever console comes bundled with the Kinect has the "better hardware". So the reason PS4 is $100 less is because it is like buying a new car without wheels. It is crippled from the start, missing what will prove to be a necessary component of the next-gen experience.

peterfares says:

Hahaha the camera will be a necessary component? No. Not unless you're 5 years old.
I won't be using Kinect on my XB1 and won't be purchasing any game the requires the use of Kinect to play the game. 

In Limbo says:

+1 "Gained the Lead!"

james v says:

Its not about if someone has money for it or not. Some people just do not want Kinect, like me. Why not buy couple of games with same amount of money?

Aaron M says:

I still think MS is right to require Kinect.  Its the only way to get game developers to actually integrate it into their games, which is better for the long term success of the console.  That being said, I agree with you on cost.  $100 is going to steer a lot of people toward PS4.  MS needs a success story, even if its only in perception.  So they should dig into their massive billion dollar cash pile and subsidize the xbox, at least initially, down to the cost of a PS4, if not cheaper.  It might be hard to make up the money, even in the long term, but right now MS has a perception of a dying empire (even though their profits are still rising) and they could use a successful launch story to help shake off that perception.

totally... They can easily make up the money with subscriptions etc.

peterfares says:

I don't want it integrated into my games. I won't be purchasing any games that require Kinect usage. I won't be using my Kinect with my XB1.

wolfgangjr says:

Then....dont.....get.....an......Xbox1. Easy right?

peterfares says:

I like Xbox games like Halo. I WANT TO get an Xbox 1. I just won't purchase any game that REQUIRES me to use the Kinect.

Aaron M says:

I hope you understand that when I say games should utilize Kinect, I don't just mean games where you flail your arms around jumping up and down.  There are smart ways for common games to use the Kinect sensors.  Whether its giving oral commands to your squad/team, or maybe tilting in racing game to make sharper turns.  Those ideas probably won't knock your socks off, but I imagine that the best is yet to come when developers, more talented than myself, look to take advantage of the extra sensors.  But they won't bother if they can't rely on consumers having the sensors available.

peterfares says:

Neither of those examples are something I'd want to do and I'd avoid them or turn them off if possible. If a game forces me to use those shitty controls i just won't play it. I gave up playing Skyward Sword because annoying motion controls were too frustrating. 

Aaron M says:

Well your just a Negative Nancy.

Odog4ever says:

$400 is also a lot of money for someone on a budget...

Maybe, maybe not. Just because someone is on a budget doesn't mean they don't have enough money. I am on a budget with enough money to put 2 in every room and not even miss the money. Being on a budget is what allows me to have that kind of money. Now towards the other point even having the money I'm still steering away from Xbox at the moment because of the extra money, it will be better on my budget to buy a ps4.

Im sick of people making that dumb argument that being on a budget means you shouldn't buy it to begin with. Everyone should be on a budget, then maybe just then less people will debtors and in control of there own financial future. That's off topic and neither here nor there.

Aaron M says:

Well said.  Personally, I think the Kinect makes the Xbox worth the extra $100.  But I cringe at the argument of "well you already paid $400, whats another $100???"

Odog4ever says:

My point it that the delta between $400-500 for a device that will be supported for 6-10 years is NOT as huge as people are making it out to be.

For me the issue is not how much these systems cost but what is the value?. For me the one PS4 game I'm interested in (Infamous) is not worth the $100 savings if I have to miss out on Kinect 2.0 control of the entire console, snappable apps, Titanfall and Project Spark in a few months, improved chat quality and headset, multiple features that matter to me with XBL Gold, etc.

For me and my use case, the saying "You get what you pay for" was never so apt as when deciding that XB1 wast going to be the console I purchased first.

Rishicash says:

To me the dealbreaker is not Kinect but the fact that X1 doesn't function as a STB.

wolfgangjr says:

Although not a deal breaker I will agree with the half way there compromise.

I think it will function as a set top box for providers of high speed data.. .cable companies could give you a cable modem.. and you could opt to use a console as your cable box...  Time warner and verizon are already on XB360...  I have directv so I cant tell you if its any good yet... but it SHOULD and COULD be better than a crappy laggy cable box...  since it's a gaming machine.   Until then...  it can remote control the cable/SAT box plugged into the HDMI in.  I have Google TV.. and it woulbe excellent id it wasn't so darn slow...   Enter Xbox..

Rishicash says:

That's just it. X1 isn't marketed as just a "gaming machine", but as a media center as well and for $500 it bloody well should be. And for $500, it should just plug 'n play without a lot of tweaking, add-ons, work-arounds and make-dos.

when I use my Transformer prime... or galaxy nexus... or nexus 7.. a lot of what I want to do feels like a hack... the logitech revue isnt much different.   On android when I listen to music and use navigation simultaneously... it felt like the phone was goign to burst...  getting a phone call could freeze it... switch to lumia?  similar CPU..  no freezing... no weirdness...  the lumia is warm but not hot... it still charges, and doesn't drain...   The Google TV?  it will play video...  even 1080p..  but install too many apps and Androids multi-task fail kills the machine. then you end up uninstalling everything to get it to stop choking... not because you tried to do more things at once... but because they are simply installed.  I regret getting the XB360 so late... I'm just plain happier with it.  Remote controlling youtube on the Xbox with a phone is so fun and convienient.

peterfares says:

It's not $100, it's more like $150. The specs of the XB1 are weaker than the PS4. Dropping Kinect would make it cheaper. 

Ordeith says:

The X1 and ps4 hardware differences are made up with a mature DirectX and drivers vs Sony's new drivers and less efficient OpenGL. Its a wash

peterfares says:

It doesn't matter how the software takes advantage of it when it comes to cost. The XB1 has weaker hardware and costs less to make. The Kinect is why it's $500, without Kinect they could hit $350. 

Duffau says:

Are you sure about that? I mean there has to be a reason why the lumia 520 performs better (smooth, fluid) than many android phones with much higher specs, right? And the hardware difference isn't even huge between the two consoles. Software optimization can make all the difference in the world; you can have all the cores in the world, but if the software doesn't know how to properly and efficiently utilize them, the extra specs will just sit there and take up power. Interesting stuff.

DMuela says:

The price its fine... PS4 is the same price (if you add the eye)... Microsoft just did the things better :)

Piro.Garay says:

I'm still getting the PS4 over XBox, even though I support WP8 and PC...

peterfares says:

Probably because most of us real gamers don't like motion control shit, and bundling it in with the system means some games will actually REQUIRE us to use it.

Rubios says:

Probably because Naughty Dog, Guerrilla Games, SCE Santa Monica, Quantic Dream, Sucker Punch, tons of Japanese developer support, better indie support, more games announced, Instant Game Collection, more elegant and powerful architecture, much better design, Bluetooth, less privacy concerns, no silly paywalls, a more open network, Gaikai, remote play, Vita and Vita-TV integration, cross-buy...
 
Not to mention the lower pricepoint or their respective ethos ("We built the best place to play"  vs. "TV TV Spurts TV").

Xeion says:

I am sorry, but to all those who have "less privacy concerns" with Sony must have been very quick to forget how hard they were bent over by hackers recently. Sure Microsoft may be more willing with the NSA, but I would rather have the NSA get info on the latest Achievements I've gotten on Assasin's Creed than have some hacktavist group swiping my data and credit card info... things the NSA already have. haha

Even if you really don't like the new entertainment center features... The XBone exclusives are quite compelling. Although that's a subjective statement, you might like PS4's exclusives better. And that's fine, with close to the same specs... The "magic" is in the Dev Kit's and the PR's ability to snag up the good developers. Sony gets Asia for free because of their national pride. But M$ has always been good at buying their way into the hearts of the masses. The battle is more than specs... It's the stuff you listed above.. and it's subjective.

_Emi_ says:

And im sure we dont care :)

poiman says:

Same here!
Great W8 and WP8 supporter. When it comes to gaming, I'm all for PlayStation.

cjallan417 says:

This might be the first time I've heard someone say they support PCs.

James Allatt says:

What people also seem to be forgetting is you will also need a Move for the eye too so add 2 players you need 2 moves or 4 you need 4 moves. Kinect you only need one.

For me the Xbox one has more games I want and I think it will also have more games the core gamers want at the start to. People are also forgetting that this is not the Kinect 1 re-bundled to it is a new device that is looking very close to what Project Natal was and because it is sold with all xbox ones developers will look to take advantage of the hardware as it can be used in many ways even if its just controller tracking. The PS Eye and move will not get the same development time as it is not sold with every console.

For me the start of this next generation is all about the Xbox one and WiiU I will look to pickup a PS4 later on in the gen when they have more games im interested in.

Nataku4ca says:

where is the like buttun in here :P

James Allatt says:

Lol Thx. No matter what console anyone likes through we should all agree about one thing and that is no matter which console you get you will love it because they all have a good line-up it just depends on your taste of games to which one is best for you.

peterfares says:

Irrelevant. I won't be using motion conrtols on either next-gen system. 

James Allatt says:

Why is it? Just because you will not be does not mean other people will not. I mean just because you are not into motion control games dose nor mean other people are not.
Im not massive on them but when I have friends and family round we will often play Dance Central, Kinect Sports, Wii Sports, Nintendo land ext. Motion games are for everyone to play but Kinect is not just about motion games. For example KI uses Kinect by tracking the people in your room so if you pass the controller around and it has that users profile on the console it will auto switch to their profile and give them the configuration they use to play that game. Its only something small but for a lot of people this could be a good thing. For me it would be great for games like BF or Forza as when my brother comes round we often go on line and take turns each but we have the controller set up different for both of them games so we have to change it every turn where the new system is able to do this for you.
The problem with people who have something against Kinect only see it as a controller and it is not and could add a lot to games this coming generation but people are stuck on the past and don’t want to try new ways of playing and if it was left to people like that things would not of moved on from a joystick.  

peterfares says:

Those edge cases where Kinect's non-gaming functionality ARE INTERESTING, but not something I really care for. And I want nothing to do with motion control gaming. Just no. I will most likely be purchasing an XB1 but I will NOT purchase any game that requires me to flail my arms around like an idiot.
 
A WHOLE LOT of people do not care for or even DISLIKE motion gaming. I own a Wii. I hate the motion control shit and I gave up playing Zelda Skyward Sword because the motion shit was too frustrating. Never again. It makes no sense to force these people to pay $150 for a dumb Kinect. Microsoft is going to lose A LOT of sales by jacking up the base price of the system by $150 and including a Kinect. Microsoft is VERY out of touch with the consumer. 

C'mon man.. James made some good points...  Give him this one...   
 
If it comes with the system and you never use it for gaming, it has real world uses related to convenience.  We know you hate motion gaming with a burning passion.. and they made it work without Kinect plugged in for people like you… so you can show your protest by keeping Kinect in the box…  but there will be a lot of people who’ll hook it up.. and excitedly go through the set up routines…  and then game support will be lack luster for a few months… but IF they want to use Skype… or check on their fantasy team while watching NFL, etc.. it will do things that will seem like magic to most people.. it will know who you are and pull up stuff that you want… I’m the only one in my family on the West coast…  If this reaches its potential, it could be cool.  I didn’t say it will be… but without the Kinect in the box, it’s not a breakthrough console worthy of the next-gen.   PS4 is trying to innovate with second screen technology similar to smartglass and Wii U.  XBone is doing that  and voice and facial recognition and entertainment center overhaul.  And it’s worth mentioning that Smartglass is on all mobile platforms… I don’t know why M$ is not getting a ton of love for doing this… Android…  Apple, and windows all have smartglass … We know Google and Apple’s stance on this stuff.
 

peterfares says:

I'll set the Kinect up. If I paid for it I might as well set it up. But I'm NOT going to buy any game that requires me to flail my arms or any other motion control. 

Smartglass doesn't require Kinect to work.

true... gaming with your arms isnt your thing...  but my point was that motion is one of a slew of input options they are giving, and it's commendable... and innovative.  The Smartglass thing was a rabbit trail on my part, I jus think it's weird/cool that Microsoft is the un-evil one right now.  Making office for every platform, smartglass, Xbox Music...  etc etc.

James Allatt says:

Peterfares I take it you are young or don’t have kids in the family then? I am not saying Kinect is a must own but it does add some good things to the Xbox one that makes it stand apart from the WiiU and PS4. But if you had Kids of your own or young kids in the family playing games like Kinect Sports or Dance Central with them is grea fun and because there are no buttons to hold its even better for even younger kids.
Kinect is not and never will replace the controller for the core but MS know this but what it does it add things to the console and games. If you don’t like it that’s fine everyone is entitled to their opinions but you should look at the bigger picture and also remember this is not Kinect 1 its is a new Kinect that the console has been created around just like the 360 was created around xbox live.

If you add a $50 accessory to a $399 dollar console you get $450 + tax, can we get some simple math in here.
 
 

walkingdogs says:

It's $69 and a far sub par product that is now just relagated to half-ass accessory like the PS eye always has been. DOA

ncxcstud says:

Plus each controller for additional people to play, and possibly additional 'wands' too.
It could end up being significantly more than $100 if you tried to match it to what the Kinect can do for '$100.00'

Has anyone mentioned wands with the new PS4? I'm curious, because I don't see a lot of talk from Sony on PS Move as it pertains to PS4... I'm curious... if it still needs wands... you make an excellent point when it comes to cost... In fact... if they included the camera and no wands.. it could have led to an internet shhh storm.
I just found this... http://www.youtube.com/watch?v=TYY-J3ckeSI&noredirect=1
Wouldn't the same thing be cooler on XBone since it can see all of your fingers?

AhmedWP7 says:

Please add the Xbox live subscription to play online

ymcpa says:

I think that would be the smartest move. It adds something people value and doesn't really cost Microsoft much.

OscarMaDi says:

Have you heard about the PlayStationNetwork+ subscription?

sandelius says:

Have you ever heard what you get with PS+? Ps+ is bigger what Ms has ever done in gaming. Ps+ will change how people get new gamrs. I'm sure Ms will copy this. That is what they do: follow real leaders and copy.

peterfares says:

No, it's $30 cheaper with the Eye, and I won't be buying the Eye with my PS4. I do not want a stupid motion control camera. 

Duffau says:

We get it, you don't like it. So stop acting like you're 5 and actually read what people are telling you before firing back at them. The point is motion control is ONE of the many many uses of Kinect. Frankly, most studios are working on including additional input methods such as voice commands, heart rate monitoring, voice and face recognition, picture and video capture, etc. They realize most people don't want to get up to interact with their console and the actual motion control games will be pretty niche like they we're on the 360. No one is forcing you to like it, but please stop repeating the same nonsense over and over.

You have got to be kidding me, right?
 
Microsoft has lost this gen before it even started.
 

hellodav7 says:

I think its fine that they are trying to break even at least.
Wish I could afford one when it comes out but I’m about to attend college and that is not in my budget.
But tell you what, they should have taken the big loss on getting Surface out there for about have of what they were trying to sell it for. They need to buy mind share and get as many of their tablets out there as possible.

Agreed. Mindshare is the most important aspect of selling a consumer product. Pricing the Surface the same price as the iPad was foolish and arrogant. After the Xbox One reveal and negative PR from the marketing department, MS should have bit the bullet and matched the PS4 price. I love Xbox however the One is not the most preordered console of the 2 at the moment. Price is a large factor in peoples buying practices. $100 difference to many people automatically rules Xbox out. Last Gen, MS had 2 models, both cheaper than the PS3, and mostly won at retail in the US. Don't expect the same consumers buying the One. :-\

DarrenSproat says:

Will own Xbox on day one so.......

tigermcm says:

Lets be real im pretty sure the tech in the kinect is worth well more than $100

NIST says:

Yup. Those engineers didn't work for free.

tigermcm says:

Exactly my point, people complained about the price of the first Kinect so $100 is a bargain

nbolmer says:

Lets be real- most people who own a kinnect use it to control Netflix and little else. Microsoft has not made a compelling case for the unit.
Forcing everyone to own one was actually a smart move, as developers know that everyone at least has one. Unfortunately, the last minute decision to allow them to not be connected tarnishes this somewhat from a dev standpoint.
So far the response from devs has been cold - how many kinnect games are launching? How many will you honestly buy.

tigermcm says:

I have 3 Kinect games 2 of which get used heavily so the Netflix argument doesnt work especially since there is smartglass on everything

kullkid92x says:

Idk about Kinect and video game features, but I do know that Kinect V2 is far more than just " to control Netflix and little else"

Already telling my xbox to turn on by voice is pretty sweet, to tell it to change channels, or to change to a video game or to search up on Bing or IE. This is a welcoming change. I am positive Microsoft will be helping every big name App currently in the xbox 360 (very few, I know) to transition to xbox one and include simple voice features and motion features.

I wont be buying one this year lol or maybe the next, but I do see the potential in Kinect V2. So this console is deff in my future 2 years from now i'd say.

I think the Kinect/Skype integration will be huge.
 

Adretheon says:

They knew this would happen based on the PS3 sales. Even after that whole debacle I'm surprised they still went with making it 100$ more than the PS4.

OMG55 says:

I'm financially challenged right now with a single income, but will get mine on day ONE : )

NIST says:

3 of those in my house on Christmas morning.

jlzimmerman says:

$499 is the price you pay, but it's over the life of the console.  Paying an extra $100, when spread over 7-9 year period is no big deal.  The XBOne with its content and online features is a better deal.

This point right here is why I'm trying so hard ot get it day one... I got the first xbox after it was a few years old and I got the 360 when it came with kinect... after how much I've been enjoying the 360.. I regret waiting so darn long. :( Considering how commited they are to the 360 ... it almost a different system from the original. with several new Dashboards and all the voice/motion control. having done kinect 1... I bet M$ is saying... "this is a great start... but now it's time to fully commit to using whatever you want to control the system.... Voice, Body, Touchscreen.... it can recognize 6 people in the room, 8 controllers, and 16 smartscreen devices. Why? who knows! :) let's see what the Devs come up with. :)

Reflexx says:

Hopefully this eventually translates to cheaper games.

mase123987 says:

Good luck with that.

Rubios says:

Sure it will... like the DRM.

If there aren't sales like we see on steampowered.com... I'll eat my shoe...  oh wait.. they already have massive sales on the dashboard right now, and the sales are sponsored by chase credit card.   ... good news... I like these shoes.
 

yosagojimbo says:

I'm sure i spent close to £500 for an import Saturn, and Dreamcast for that matter, and people will spend over or close to that amount on a mobile phone or iPad, so I see it as well worth the money... My brother spend more on graphics cards for his p.c's and still has to fart around to get games to run

Good point. (Dreamcast FTW) next.. we need to see a smartphone or tablet stay relevant as long as Xbox. hahaha

Wael Hasno says:

I am on a a tight budget right bow but I still pre-ordered Day One. It is worth it. I would be greatly appreciative if they issued a price cut though.

SleepyTheDon says:

I think it would benefit MS to sell the console at $359 without Kinect and $499 with it. It just makes since. PS4 is no slouch and not every XboxLive or PSN user is loyal by default. Sometimes our budget is the game changer

_Emi_ says:

they already said Kinect is part of the system, if you dont want it, just disconnect it. stop the "no kinect" crap to make it cheaper. can you understand that? Microsoft SAID KINECT IS PART OF THE SYSTEM. and thats why they are bundling it. they want developers to take advantage of it and don't ignore the technology. can you understand that simple thing? or I need to type slower?

Jf.Vigor says:

Why are you such an asshat about it? Because you're behind a computer screen? Ever considered the possibility he never saw that article?

nbolmer says:

What an idiotic response. Its a peripheral that few devs have shown any interest in. The recent press and demos don't even mention the thing. Saying that it is part of the system didn't bolster your case. Until there is a compelling use case, the question remains: WHY

kullkid92x says:

And how do you propose a "compelling use case" will happen? By not bundling the Kinect sensor? No man c'mon use your logic for a bit here. All the time, research, and money spent on version 2 of Kinect. It makes no sense for Microsoft to sell the xbox without it.

In Limbo says:

Although I have felt the way you do (and to a certain extent, still do), I wouldn't have typed it. I love your passion though! Lolol! ;)

SleepyTheDon says:

EmiYou are an idiot. Did you even think twice about what my opinion of Kinect is? No you just decided to blast me for a marketing idea.
 
I think the Kinect is a great peace of hardware AND I agree with you that if you dont want it dont use it.
 
I work in Advertising and from a marketing stand point It makes since to sell them seperately REGARDLESS of what Microsofts vision is.
 
Not every gamer or Dev share the same vision.
 
I was only stating to get a huge jump on the PS4 Microsoft should do what i mention to make it almost a no brainer for people on a budget, parents buying their kids their 1st systems.
 
FYI I paid IN FULL for my Day One Edition the DAY IT WAS AVAILABLE
 
I enjoy using my Kinect and I can not wait for Kinect 2.0
 
So the next time you decide to blast someones post think before you speak.
 
So dont talk tough to me digitally.
 
 
 

Good point... When I read that M$ is not taking a loss on these.... it bummed me out... they should definitely take a loss on Xbox.  They usually do...  if they can buy Nokia and Skype.. they can afford to lose $20 a console... if they sold it for $450 and said that Kinect alone is worth $200  (marketing)  it would make the decision for some people harder...  if they matches Sony’s price...  it would probably cost M$ $50-60 a unit until they got manufacturing costs down...  but it would be worth it...  it would murder the competition...  there would still be people who would complain about the Kinect.. even at the same price... but...anyway...   From a marketing perspective.. they should have saved money on advertising and sunk it into the price point.  even if it was selling at $425 "for a limited time only" or whatever.  That being said.. I like all the research they put into the new Xbox's Hyper-V, Cable provider integration, and Kinect... … So I’m supporting their research dollars with mine.  I love what they did with the Surface RT and WinPhone...  so I’m hoping for more of the same.

Arafat Sa says:

She's been bashing people since 1997. Look at her profile with all those comments. creepy. anyway, what is xbox?

Rubios says:

You mean a part of the system like all the DRM bullshit?
 
Looks like the flipped the switch just fine.

mase123987 says:

You are missing MS's vision of Kinect compared to Sony/Eye. MS looks at the Kinect as part of the console and not an accessory. That is the key. Selling the console without it simply doesn't make sense.

In Limbo says:

I'm still shocked at how this is such a hard concept to accept . . .

Agreed, this is a key difference between the consoles. Kinect and Xbox One are components of the same system. Can't wait to see what innovations result.

MikadoWu says:

I agree with "budget is the game changer", and may ultimatley decided the winner, or at least in the short term.
However I also agree with Microsoft.  I like Kinect.  Sadly the Games are not out that take advantage of it.  The belief being that only a small precentage have it.
By selling the All Xbox Ones withthe Kinect, the developers know everyone has it, so the install base is more solid.
You always hear about people saying htat Microsoft Beta tested this and that on the consumers.  This is probally most true with Kinect.
The Future of Technology is moving away from Keyboards, Mice and ever controlers.  They will always have there place, but no longer have to be there. 
My Belief is Microsoft truely has the better console for the Furture.

onysi says:

at least it isnt 599 uS Dollar like the ps3 was.

el-ojo says:

PS3 had Blu-ray, backwards compatible chips, both of which added to the cost. As high as the prices were, SONY sold those PS3s at a LOSS.

Skiffle says:

Good luck with that MS.. Sony win!

I Spiritus I says:

I'm happy with the way Microsoft are going. Your paying extra for future innovation. Looking forward to what the new Kinect & Smartglass can do!

We saw Nintendo do this with the Wii U, and we're still seeing that thing sell terribly. Granted, it's a vastly-inferior system, but this sounds a bit like a hint of desperation over console-related profits, in my opinion.

charlyc311 says:

It's basically cheaper than the PS3
If you had the PS move set, + thecopbtrollers you will have to buy plus the Tech/graphics for the XBox is waaaay better.

el-ojo says:

A developer stated that the PS4 is 50% more powerful than the XBOX ONE, plus the PS4 uses GDDR5, which is supposedly optimized for graphics processing...so, the Tech/Graphics is "better" on the PS4...theoretically.  

kc77 says:

Getting a ps4 because I grew up with Sony and Nintendo systems. I'll probably get an Xbox later on too but its like a tradition to buy the Sony product first. Lol. I still wish Nintendo would make a regular console system and just go all out with it.

el-ojo says:

I keep going back and forth. I kinda had my mind made up for the ONE, but now...like yourself I'll get the PS4. NEXT Year I'll get the Wii U for smash. Afterwards, I will get the XBOX ONE when the price drops or a new iteration comes around.

I'm not sure why I'm surprised that most of us here are Xbox fans.

bpmurr says:

It shows with titles like Killer Instict running at 720P 60FPS.  I really hoped that this gen would have brought 1080P 60FPS gaming across the board.  It's more like Xbox 540 and PS3.5.

Rubios says:

I'll say it again... they should have gone for the 499 pricepoint with solid hardware (something like a custom 7970), not cameras and fluff.
 
So far this generation is pretty disappointing hardware-wise, the last one was a graphical leap over everything else... this time we are stuck mid range PC for god knows how many years.

larspassic says:

Does Apple get in trouble for having the most expensive smartphone and still making a profit?

Coreldan says:

In a way surprised that they aim to break even. Console gaming is a really profitable market, just that traditionally the money comes from games and accessories. That said, its not like they said they are making profit out of the console, just minimizing losses, but I agree with many that it mightve been smart to have a lower entry bar to get an xbox one as opposed to trying to avoid losses from console itself. 100usd is quite a bit and will lose some of the customers, even if it gained new customers from an other audience

tylerb2002 says:

hopefully they will drop the price by $100 soon, because that's when I will buy one

You're right..... if they do it right... there will be way less used games sold.. and games will drop to $30 over the course of a year like they do on Steam... so if I want to play Assasins Creed.. but I'm willing to wait for it to be a year old or on sale.. I can get it digitally later... Developers will still get paid and M$ will get their cut because it was bought through them... Add in XBlive, XBMusic, yadda yadda yadda... Match PS4's price... ASAP.

I seem to recall (I could be wrong) a lot of folks asking for the Kinect to be bundled, when it first came out.

AhmedWP7 says:

Add the Xbox live subscription to play online

Same as PS+ for Play Station. Those networks are expensive to maintain.

Robborboy says:

Mistake. Consoles should always be sold at a loss. Not breaking even like Nintendo did. 449$ would be great.

DouttJ says:

I'm a die-hard gamer and I love my online games, own both PS3 and Xbox 360, and there is no competition when it comes to the enjoyment factor of online games, Xbox 360 wins hands down.  So even though I will be getting both, I would pay an extra $100 to Microsoft just because I know for sure the online experience will be a great one.  Sony promises that it has it's act together on this, but I haven't seen it, or experienced it yet, so naturally I would get a Xbox One over a PS4 if I only got one of them.

eharris560 says:

A $100 is a breaking point. You can't be serious, that's date money. An Xbox One is like a BMW X5 and the PS4 is like a Jeep SRT8. Yeah the Jeep has more power, but the BMW offers a better experience. Send the $100 an upgrade your life. You only go around once.

sandelius says:

100$ is too much of something you dont need or want. Simple as that. You gotta adnit there is no single game or app that cant be played or used better with other input methods.

Rubios says:

How does it offer a better experience?

Droooool...  Give me the SRT8 any day of the week.  :)   I currently have the 98 Limited Grand Cherokke with the 5.9...  I'd get rid of the street tires, lift it, and have a blast.  Same thing I did with mine and I love it.  :)  Upgrade to a bored out HEMI 4x4?   yes please.

As long as developers use the kinect in meaningful ways I am fine with it being required. However, if it is all just gimmicky crap that developers don't use then the $100 is not at all justified. 

KelvBlue says:

Oh I am pretty sure the developers will make use of it. I will be waiting to shout 'rocket launcher' 'reload' 'reload' and using my head to turn the view point in my FPS game.

ether813 says:

Using Kinect in Madden, 2k13, and Mass Effect 3, mainly voice commands during the game is something i have grew accustomed to :-)

Rubios says:

They won't, multiplatform development is the king now.

We'll probably see some voice commands... but you don't need a ~200€ camera for that.

Hadooken! Spinning round Kick! Sonic Boom! Red team go! heheh... Reminds me of the funny Assasins creed for kinect parody on youtube... kidding aside, I hope the devs get their butt in gear on kinect and smartglass.... I'm excited for smartglass for gameplay my wife can jump in on and excited for kinect with regards to media and exercise.

ether813 says:

I ordered the Xbox One based on past history with how games on Microsofts side turned out versus how they worked out on the Sony system, the way how Skyrim and Fallout worked on the Xbox360 as opposed to the PS3, the Orange Box (Half-Life 2) and how that turned out on Xbox opposed to the PS3. The online experience, though more expensive on the Xbox 360, always felt better on the Xbox 360 in my opinion. The only thing the XB1 could use in my opinion is some better free to play options. I had both a Xbox 360 and a PS3 and Playing DCUO on the PS3 was always fun when bored, but honestly the only reason i got a ps3 in the first place was because at the time, i was in need of a blu ray player, and the price was comparble way back with it came out.

Connor Bunch says:

I think the Xbox one will be pretty cool but I have to admit.... I'm a PC gamer all the way, so I will not be getting one anytime soon sadly.

VegaNovus says:

I can understand what people are saying about the $100 difference and MS could have saved that if they didn't package the Kinect. I'm a customer that likes choice in my purchase. But at the same time, if next gen gaming is truly going to "advance" there needs to be specific requirements and essentials IMO.
I think every XB1 game should require some use of Kinect and every PS4 game should have remote play for Vita.

Rubios says:

Every PS4 game will have remote play.

lovebill says:

500$? It will be a flop. Console gaming is now more niche than before. People buy 80$ chinese android tablets for their kids. In my opinion PS4 and Xbox One will not be half as succesful as PS3 or 360.   And PS4 got an edge cause of price.  In USA maybe xbox will still sell more, rest of the world, PS4. 
 

wpoblation says:

I am getting both, but it will be some time after the first year. Still have some games for my 360 that I need to go through, and still need to buy my very first game for my PS3. Yes, I have a PS3, but no games yet.

ShaunKL says:

I don't think they'll break even.  I do think the price is right.

peterfares says:

Hah I was arguing on this site a week or so ago with another guy who was saying Microsoft would be losing HUNDREDS per unit sold. Hahaha. I wonder where he is now?
I argued that they're breaking even and if they were to offer a SKU without connect they could price it at $350 and it would sell like hotcakes.  

Rubios says:

I think the technology in Kinect 2.0 is too expensive and pointless for a video game console.
 
They cut all possible corners in the rest of the hardware, and it is still 100€ more expensive.

WWE7Nations says:

Gamers Need A Next Generation Console Like XBox One,Not A Spec Upgraded Only PS4.