i keep seeing "free for a year" and i don't know that you misunderstand it but i feel like a lot to. it is "free until dec 2014" so it's only "free for a year" for day-1 buyers.

also i'm very curious to see the subscription model they use after that free period is over.

lastly, how valid this pricing comparison really? i mean how many people really have all 4 programs?

This goes back to my original statement that you are making it sound as if gamers dont workout and that is far from being correct.  People who like games and workout this is really cool to them and could interest them more in Xbox One.

And that is nice that WiiFit has inspired it.  I did not deny that and I respect Nintendo for what they have achieved.  WiiFit has been revolutionary and I can only applaud them for such things.

Looks like the value of the XB1 gets a little better.

Please read OP 

"Now really most people are only going to use one of these programs so the price wouldn't come out this high if you are only buying one or two programs but a $495 deal is pretty great either way you look at it."

Of course it's nice! Never said anything against it. But I personally think it won't be a Killer App for the masses.

If you go to the gym for a cardio workout, you have $55 per month for gym membership.  Some gyms actually charge extra for trainer programs, so you may even have an extra fee on top of that per month.

Xbox Live works out to $5 per month, plus a sub cost for Xbox Fitness.  Conservatively I'll say it'll be $100 per year or generously rounding up $9.00 a month.

If, after one year of using it for free, getting to try out four different workout programs, and discovering which one works best for you, and the benefits of that program for you, you don't feel $14 per month is a reasonable fee to pay for a personalized workout program then I'm not sure what to suggest for you.

That is extremely inexpensive.  And it isn't as if you've got nothing out of it.  You still have an Xbox One that you can use for other entertainment purposes.

I will agree, however.  The drop-off rate come December 2014 will likely be significant.  How so, I don't know.  However, if Microsoft advertises this in the right places, I think the uptake over the longhaul will be better than what people realize.  My understanding is Zumba Fitness continues to sell well for the Xbox 360 and likely it'll do so with the Xbox One as well. 

Please read the OP

"Im not saying to go out and buy an Xbox One or that this App is going to push millions of units"

Then I'm sorry for my ignorance.

The point of the four programs and comparing pricing is the fact that entering a workout program you may not know which one is suitable for you.  With Xbox Fitness, at least during this first year, you can literally try all four for 90 days each and figure out which ones you may want to stick with.  If you buy into one program, you may find it doesn't work for you, then you may try a second, a third, etc.  There are more than just four, but I think Xbox Fitness is trying to give a decent set of workout routines for varied level of effort.  I certainly wouldn't be able to do the P90X program, but I may be able to build up to it eventually.

A subscription model likely also reduces the costs for most people in the long run as well.  I imagine Microsoft will offer a 30-day trial, then after 30-days either a month-to-month subscription and a yearly subscription.  The month-to-month being the best and most obvious choice for non-committal users.

If they add in new excercises for each of the programs as you continue on, or possibly even new workout programs, I think it could grow as a platform.  In otherwords, you won't see individual programs like "Nike Sport Fitness" or "Zumba".  You'll have Xbox Fitness and within it you have optional workout programs you can purchase and use with your subscription.   

P1: a valid point.  being able to dabble in each and pick your favorite is a nice feature.

P2: i figure yearly and monthly options is obvious.  i really just meant i wonder how much they'll charge.  $5/month?  $10/month?  $50/month?   gyms are inherently expensive but you also get access to expensive equipment.  i'm not sure what that magic price point is that is a good value for the service.  just curious what MS will pick.