| Seece said: They could do $199 at $25 a month ($500) for a year or $15 a month for 2 years. ($560) |
It'd work to get sales, but Microsoft wouldn't be making a profit at all on the first one, and they'd be losing money on Xbox Live for both. It'd also put Microsoft at risk. What happens if after a month or two the people quit paying. The Xbox One would get locked down, but the cost of the console to actually make a profit would need to be closer to that $500 mark. If they paid $200 then only paid two months, Microsoft would lose $250 on the console. The disconnection fee would go on the customers credit if not paid, but Microsoft may only see a small amount of that money when they sell the ownership of that to a collection agency.
Usually people who do pay plans are the same kinds of people who are usually a month behind with all their bills. The people who only pay the past due. Not saying that this is the case for everyone, but most of the people fit under this. This is why it's such a risk for Microsoft, because as a form of entertainment only, this would be one of the first things to go if they don't have enough to pay for it.
