Xbox One Is Pricey Because Microsoft Doesn't Put Consumers First Like Sony Does

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Sony and Microsoft might compete in the same space, but they're nothing alike. 

Sony's mantra since the PS4 was revealed has been to appeal to gamers, and more specifically any consumer who enjoys video games. That means not prohibiting used game sales, letting people play when a connection isn't available, and pricing the console so it's affordable. Up to this point its strategy has worked. It sold out of launch day bundles within 48 hours and has continued to show dominance in polls. Although the PS4 will be the first Sony console to require a subscription fee to access many online features, consumers have been willing to push that aside. Sony has convinced the masses that it's looking out for their best interest.

Microsoft's corporate greed has finally caught up with it. Although many of its Xbox One policies have been reversed, the fact that it wanted to have complete control of game libraries and disallow traditional game trading said it all. Consumers were so outraged that Microsoft did a 180 on mechanics that its engineers had worked tirelessly on. But the damage was irreversibly done.

Then there's the price point. Many have wondered why a machine that offers less performance than the PS4 costs $100 more. Many point to the bundled Kinect 2.0, which certainly has had an impact, but there's more to it than that.

While speaking to News 10, Wedbush Securities analyst Michael Pachter stated the following:

I thought [Microsoft] were going to price at cost at $399 and put Sony in a pickle. They didn't. They priced at a profit, and as Microsoft said to me, "If we sell 10 million consoles at $100 more that's a billion dollars".

A billion dollars. To Microsoft that's like a bull seeing red. It can't take its eyes off the number no matter the consequences. Meanwhile, Sony is expected to cut even at its $399 price point despite being in serious financial trouble and considered "junk status" by credit rating agencies. It could have easily priced its impressive hardware at $499, but that would have gone against its principles.

When it comes down to it all this is all about making profit and both companies have wildly different philosophies. Microsoft has always been about business first, consumers second. Its Xbox One price point is an underlined example of its tendencies. Sony would never follow such a business model and has always been about luring consumers in with value and fighting to keep them under the Sony umbrella. Although its PS3 has remained the most expensive console in history with a $599 SKU, it was sold at a hefty loss during its first year. It learned its lesson, though. The announcement of a $399 MSRP PS4 was like seeing an ICBM fired at Microsoft.

As lop-sided as this all sounds it's extremely unlikely that the Xbox One and PS4 won't fight a bloody battle next-generation. This is only the beginning of a long war.


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What was being said last generation lol?





Orly? Pardon my skepticism ... and now I shall read the article.

I thought this was going to be a Rol thread that was sarcastically portraying how reactionary some of the Sony fans on this site are.

Well at least I got to see some of that anyways. 

http://gamrconnect.vgchartz.com/profile/92109/nintendopie/ Nintendopie  Was obviously right and I was obviously wrong. I will forever be a lesser being than them. (6/16/13)

Lol, that isn't very well thought out at all... Do they not remember the PS3? I should make an opinion piece on how Sony hate Australians.

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FUD article...


Selective memory activated.

Do you have fun playing a console different than mine?


Well sony is selling their console in Europe for 524,51 dollars and ms for 655,64. So yeah they both love their consumers especially those who have euro and pounds as their currency. Just for curiosity why canīt they do convertions? seriosly...399,99 dollars is 305,01 euros!

We are not Microsoft's Customers. 

(Nor are we Sony's, BTW). These companies sell consoles at a loss, and then regain that money by charging developers licensing fees to make games for their consoles. DEVELOPERS are these company's customers, and we are the developer's customers. Not Microsoft's. Not Sony's.

Think of each console as it's own miniature marketplace: every game sale makes money for the developer, but because the developer has to pay to get in, the tech company also makes money. Because the tech company sold you the console at a loss, though, they didn't make money off of you. Even with a subscription service, they're barely making any money off of you, the end user. You are a medium for them to make money off of the developers.

Sony's pro-game stance has nothing to do with who their customer is, and is more a PR-move to make their console's marketplace healthier by attracting more players. Microsoft's DRM had nothing to do with what consumers wanted: it was a ploy to make their console's marketplace healthier by attracting more developers.

The only exception is Nintendo, who traditionally makes both the console and the games and makes a profit on sales for both. They changed that with the 3DS and the Wii U, but Nintendo still doesn't take anywhere near the loss on new consoles you can expect Sony took with the Vita and, because the customer is almost certainly buying a Nintendo console for Nintendo's first party IP, it makes almost no difference. There's no licensing going on because it's basically a one-company ecosystem.


PS One/2/p/3slim/Vita owner. I survived the Apocalyps3/Collaps3 and all I got was this lousy signature.

Xbox One: What are you doing Dave?