While the 360 has not received a price cut in a while, keep in mind they added a $150 accessory and kept it the same price. That is part of the reason they did not drop the price. Also, the 360 gets temporary price cuts during the seasons when it sells most, so you're wrong and it did receive price cuts, just not the traditional ones.

Yeah, no. I don't see what's so horrifying about paying an extra $3 a month over two years (vs a $500 console + 2 years of Live) when you're going to be paying for online regardless. I think it's a great strategy from Microsoft, if anything.

They've already proven that they can make a subscription model work, so this could help nudge a lot of people into upgrading earlier through a lower cost of entry. The only way Sony can nullify that decisively is by offering a PS4 model much cheaper than the "unlocked" 720 price--something I doubt they'd can afford to do, given their shit financial situation and the specs/features we've heard of. And I say that as someone who bought 2 PS3s (first one broke) specifically because I have no interest in paying for Live.

Nor do I expect them to not cut prices if this model works. Even if the PS4 isn't super cheap right away, it will come down in price over time for sure. MS will have to cut prices in kind if they want people to keep getting the more profitable subscription model.

Why would I discuss your thread when I disagree with it?

Its silly. Especially this... "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. "

Why would consumers be tied to a single console? Espeically when the payments are easily affordable.

and that changes anything how? Not to mention over the next 2 years we have 4 more consoles launching. Who knows how many more will be anounced. i believe OUYA will launch a new model every year they said.

well i think the subscription model is a great idea for consoles. Both MS and Sony will probably have them for their next gen consoles.

Also, prices will still be a factor. The initial price and/or the subscription price can still drop.

I also don't see this as a easy way for other manufacturers to get into the business. And even if they did would it really be that bad? Creating a console whether its pc based or not is still a major investment. Why do you think Valve are taking so long to introduce their steam box? Its obviously going to be based on standard pc parts.

Also, its not the most lucrative business in the world...so i don't think Samsung, LG will just one day decide to make a console for the sake of it.

Maybe its me but you act as if people woke up yesterday and suddenly found out that you pay more money for any type of sub plan.  A sub plan is credit.  You get something in your hands cheaper than the initial cost and the cost of that is you pay more for the hardware.  There is nothing wrong with such a plan because it gets the hardware in people hands at a cheaper price allowing that person to spend that money on other things like 2 games and maybe an extra controller.

As for the 500 dollar model, the market will determine if that price comes down just like it always does.  If MS is not selling enough consoles, Sony and Nintendo make a price change, things like that will bring that price down.  MS would then change the sub model to reflect the difference in price the same way phones and tables that are on subs do today.  You really would only have to worry about the price not dropping if there was not competition within the market place.

MS way to keep profits high is not the console but XBL service.  A service that gets money out of you every year or month, that tie you to its products is what MS is really looking to do.  This is the reason MS is tieing in the sub price with XBL.  MS could have easily stated that you pay 300 for a 500 device and pay 15 bucks a month for its sub without including XBL.  The difference is that MS want to get consumers on the service.  They want to get those consumers purchasing stuff on the service and be dependant on that content.  This is where you should be concentrating your argument instead of a sub price for a console.