I will disagree.

In the US alone, fitness is over a $100 billion dollar a year industry with the average US consumer contributing $150 per year toward fitness equipment alone but even that doesn't quite express just how much people are willing to spend on fitness.  Most people who purchase some type of cardio equipment spend anywhere from $900 to $3500 on a single item alone.  For strength/muscle building equipment, US consumers pay anywhere from $10 to $400 for sets (a pair of weights to a complete set).  That's just to get started and it doesn't include things like books which are a $500+ million dollar a year business.

Now a lot of gyms offer both equipment and cardio programs, so likely a better alternative most would say.  The average price of a gym membership is $55 per month.  Yearly, that figures in around $660.  There will still be equipment you buy, like workout gear and mats, etc, so even that price will be slightly higher.

A 90-day cardio program like P90X cost over $300.  A gym membership, $660.  If we go with averages on equipment, $150.  Grand total, $1,110.  And those prices don't include transportation. 

So for $500 + the cost of Xbox LIVE for 1 year, you're talking $560.  Whether you're a man or a woman, whether your serious or non-committal, you pay the same.  So for the persons who don't get into fitness programs, but want to try something this is a very inexpensive alternative.  Now, realistically, you're still going to get equipment.  For some of the exercises used in Xbox Fitness, you'll need dumbbells and you'll likely want a mat.  Mats and dumbbells sets are cheap. 

As for Wii Fit, the general concensous is it's beneficial for older adults to get them moving, but if what you want is to build strength or endurance than Wii Fit does neither.  Walking actually offers about the same calorie burning as Wii Fit's most challenging exercise options. 

The fact they are willing to lose money for an entire year and hope to retain customers on a subscription basis is a good indicator of confidence.

I don't think this is a PR stunt, would be too costly.

That's the reason Wii fit sellls - it's a combination of light entertainment, exercise and price.

It's rather difficult to sell an expensive entertainment device as an intensive cardio program.

I disagree.  The reason Wii Fit sold so much so quickly is on the promise and belief that it could be a good exercise program.  I have a friend, very fit girl, who used it religiously but could never get anything out of it.  Eventually ended up going to a gym to workout.

It's a decent physical theraphy tool, do doubt about it.  When my father was receiving physical theraphy they used one with him, and even recommended buying one for him (he didn't want to spend the money on one).  That aside, Wii Fit doesn't really offer any benefit excercise wise.

The sad fact is you can sit all day in place, and you will still burn more calories than you will using Wii Fit for 30 minutes.  It just doesn't push you enough.  You have to get the heart rate elevated for a period of time to really benefit from any excercise program and the Wii Fit just doesn't do it.

It does get people moving, and it does get people thinking about excercise, but to say the Xbox One is significantly more expensive than the Wii with Wii Fit is just plain wrong.  If you, at the time it was first available, bought a Wii and Wii Fit, you'd have been paying $350 combined for an exercise routine that accumulatively did nothing for you of any significant benefit.

For $560, on Day One, you don't get one cardio workout, you have four.  Four routines that you can use throughtout the year to try and workout to to find which level of intensity meets your needs.  If you buy the P90X program and realize it just is too intense for you, you've wasted $300. 40% of monthly gym membership fees goes to waste annually.    So of the $660 people on average pay for a membership, $264 of it is wasted.  Every year!

My guess is Microsoft will offer both a yearly and per month sub for Xbox Fitness.  If so, my guess is both will be reasonable since there is little cost overhead.