Why the smartphone model is wrong for consoles

[Mr Puggsly]

VGKing said:

Mr Puggsly said:

VGKing said:

We've all heard the rumors about the next Xbox being sold at $300 w/ a 2 Year XBL contract @ $15/month. At first this might seem like a great deal but it ends up being more expensive than shelling out the $500 right away. That's not the worst of it though. If people aren't smart enough to do the math and waste their money, I have no problem with it. It doesn't effect me and it won't affect smart people.

Here's where it starts affecting everyone.....if this subscription model becomes popular then the $500 console won't drop down in price. If this $300 console sells 10million within its first year, why would Microsoft drop down the price? People are already buying it and its only going to be more popular with time. This isn't just giving consumers options anymore, its about keeping profit margins high and keeping you tied to a single console. It's not good for consumers. Its only good for Microsoft or whoever else decides to follow this pricing model. 

1. You're getting worked up over rumors. Stop it.

2. It may be a great deal to people who don't want to spend a large sum of money at once.

3. Quit worrying about how people spend their money. Especially since we're talking about relatively small amount of money.

4. If the subscription model become popular, than that means consumers are happy with it. Competition still exist.

5. Consumers will have options. There are always options. Xbox Live is a pay service and its been very successful, but I don't see MS's competition doing the same thing.

6. If others decide to adopt the subscription model, their prices will still have to be competitive.

You worry too much VGKing. You worry too much about MS in particular.

1. Not just rumors. There's already a $99 XBox 360 w/ 2 year contract. Microsoft has already started doing this. When was the last time 360 received a price cut?  Next Xbox will be $300 w/ $15/month sub for 2 years. I would bet on it.
2. I already covered this in the OP.
3. I already covered this in the OP.
4. I already covered this in the OP.
5. I already covered this in the OP.
6. Depends. Xbox 360 is competitive right now yet it hasn't received a price cut in years. 

I worry about this industry in general. It just happens that Microsoft has been making the news lately and its fron and center in my train of thought. I mentioned that this would be a bad thing for any of the Big 3 to do. It just happens that Microsoft already started doing it, which is why I used them as an example. Don't be so defensive.

1. The subscription model exist for the 360, but we only see rumors for the next Xbox's prices. Lets wait and see before we get worked up and piss and moan about prices.

When was the last time the 360 received a price cut? Why does it matter? The 360 is reasonably priced comapared to its competition.

2.3.4.5. No you didn't. You just babbled about people being stupid and MS is hurting us all by taking their money through subscriptions.

6. The 360 hasn't needed a price cut. The 360 sells well and is very profitable. Its also cheaper than the PS3 and Wii U entry models.

I'm not being defensive, you're just over reacting.

Sony fans used to worry that Live's success was going to make charging for online gaming standard. But it didn't happen. Sony instead created a different type of service that pleased their fans.

Now here you are, a Sony fan worried that MS's subscription model is going to keep hardware expensive thus hurting consumers. Do your shoulders hurt from always being up in arms with MS?

When avid Sony fans aren't getting upset about MS rumors, they start making predictions of how MS will hurt consumers. Seriously dude, is this the only crap your brain thinks about?