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. 

It would fall in price over time - just like smartphones currently do.

And don't worry - you'll always have the standard $500 upfront version anyway.

Why are people making a big deal out of nothing? It's an option.

I could of sworn smartphones drop in price and they have a sub model.

It's more like "wrong for consumers" with the continual charging philosiphies of XBL Gold (P2PO) and I've been saying it for years now. We should all take the side of consumers and not the companies on these kinds of business practices, unless you work for the company then feel free to preach it as a good idea since it fills your wallet.

It's also not a "smart phone" model BTW, it's the subscription model for what it does.

We'll find out, but current evidence suggests Xbox gamers loves them some subscriptions.

This.

The model of deposit + payment plan isn't the issue. It's actually really smart, because of the psychological nature of humans when they see a price tag.

If you see a car marketed as "$349" a month with $1500 due at signing in fine print, rather than "$30,000" you're more inclined to consider the offer.

That said, the subscription online play model as the only option for multiplayer has got to go. 

I am smart.

And when I read stuff like

well I can easily tell you are indeed, smart.

You get exactly not only how you should think about people and the system (fuck stupid people, I only care about making right decisions for myself) and how they unfortunately affect us (the problem is dumb people make life shittier for everyone including smart people).

The solution, and I'm sure you know it but you're either too young, too lazy or too uncertain to make it yet, is to get rich : no problem of price or money waste.

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 becomes popular, than that means consumers are happy with it. Competition will 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.