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ItNetPro said:

3rd and final point people recognize value vs price. I feel that like the PS3 eventually people saw the value in the extra cost of the blue ray and were willing to spend the extra cash to buy a PS3 because of it. The same will hold true for the Xbox One with the Kinect bundled. Twenty million sold Kinect already has a fan base and as more people see it in action then will want it.

Microsoft was smart going the all in one entertainment route. They took a page from the Wii's book with innovation that will draw a more mainstream audience while maintaining the value for most current gen hardcore Xbox 360 gamers.

If this were true, then all the posts back in 2006 about how a 360 with wifi adaptor/HDD/HD-DVD drive/Gold was more expensive than a PS3 might have had some sway.  But they didn't.  People care about the price more than added value.

The Wii's book was a new easy to use control scheme paired with broadly compelling software for an affordable price.  Kinect software hasn't exactly been lighting up the charts since the initial salvo, so I'm not sure that is going to convince people to pay $500.