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Forums - Microsoft Discussion - The reason why you pay for Xbox Live - An attempted Explanation

theprof00 on 14 November 2008
auxerre said:
theprof00 said:
Yup.
price is a part of value, and there are only 2 AAA exclusives.

Don't get me wrong I love the system, but it doesn't have the perceived value of something like the Wii, which has everything going for it including the style and social desirability/status symbol value.
Just like Xbox Live, the perceived value is redonkulous. But that doesn't mean it is justified. Some things are justified, some things aren't.

 

To me, value of a gaming console has everything to do with the amount of enjoyment you get out of it in terms of gaming, and nothing to do with style of social value. I've got a Wii and I haven't played it since Boom Blox. To me, I regret paying $250 for it since I don't believe I've received that much enjoyment in return.

On the other hand, I play my 360 every day, and am on Live almost every night. I haven't had this much enjoyment from a console since PS1, which still holds the place of my favourite console ever. In terms of value versus price, I'm extremely happy.

But bottom line is that value/perceived value has nothing to do with companies operating at a profit. If Sony was not making a profit off of their PS2 right now, their PS3 losses would be crippling them even more than they already are. They need to make a profit, and as a fan of their system, you should be looking forward to the day when they can sell their console and make money off of it, since that is the only way to ensure it will enjoy the same longevity and support that its two little brothers did.

Well that is for you, you are a gamer. For every one of you there is another who buys based on social status.

trust me the value equation is a ridiculous one.  sony knows ps3 has to be at 400$ because it is hard to sell them otherwise honsetly.

also, why sell ps2 for 50$ and cannibalize its possible ps3 sales. There are many reasons. I think the entire point is:

Is 200$ worth 4 years of gaming on top of the console price when competitors are getting similar services for free. Preceived value goes down as exclusivity goes down. especially when you are the one paying the money.



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Garnett on 14 November 2008
theprof00 said:
Sony definitely had competition, but it just blasted it out of the water, much like the wii is doing now.

I just don't think Sony would pay rockstar to stay exclusive when there are plenty of benefits to being exclusive for the developer and also why would they spend billions when they could pocket it?

What reasons? And stop taking my words and rearranging them,i said Sony PAID Rawkstar to keep it on PS,Cause if its only on PS,Then more ppl buy PS for that game and PS gets more sales.

 



*Remember when the world was supposed to end on May 21st, 2011? Well click here to see our short parody video of it [not]ending*

auxerre on 14 November 2008

Competitors aren't getting a similar service for free. Live does not equal PSN and especially does not equal Wii's online. Additionally, using your argument, why would anyone pay $400 for a PS3 when they can get a similar console for $200? Most people will say, "Well, you get a hard drive, you get Blu-ray, etc.", but essentially you play the exact same games on either console. But some people may pay extra because they want the hard drive or the blu-ray — which is the same reason people pay extra because they want Live's features over PSN's.



LEFT 4 DEAD - November 17th

pieschl05 on 14 November 2008

this is also a downside to xbox live. you could never fit an online game like resistance 1 or 2 on microsofts servers. Sure the companys have to shell out the cash for something like that, but in my opinion when they do they do it right.



Garnett on 14 November 2008
pieschl05 said:
this is also a downside to xbox live. you could never fit an online game like resistance 1 or 2 on microsofts servers. Sure the companys have to shell out the cash for something like that, but in my opinion when they do they do it right.

Wrong,ugh another account created,ok well those are game servers that ANY company can use,XBox live has servers like those.

 



*Remember when the world was supposed to end on May 21st, 2011? Well click here to see our short parody video of it [not]ending*

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Sardauk on 14 November 2008
theprof00 said:
value my friend it is all about perceived value. You don't sell something that good for nothing.

Xbox Love is nowhere near that kind of value.

 

... says the XBL non-user...

This is not what the thousands and thousands of XBL users think. The system generates more than a billion of revenues.

I don't think people pay for nothing ... but hey you can't beat the figures.



 

Evan Wells (Uncharted 2): I think the differences that you see between any two games has much more to do with the developer than whether it’s on the Xbox or PS3.

megaman79 on 14 November 2008

To quote George Bush the president, "dont give up on capitalism" hence you pay for live



“When we make some new announcement and if there is no positive initial reaction from the market, I try to think of it as a good sign because that can be interpreted as people reacting to something groundbreaking. ...if the employees were always minding themselves to do whatever the market is requiring at any moment, and if they were always focusing on something we can sell right now for the short term, it would be very limiting. We are trying to think outside the box.” - Satoru Iwata - This is why corporate multinationals will never truly understand, or risk doing, what Nintendo does.

Garnett on 14 November 2008
megaman79 said:
To quote George Bush the president, "dont give up on capitalism" hence you pay for live

 

or 400$ for a blue ray player :)



*Remember when the world was supposed to end on May 21st, 2011? Well click here to see our short parody video of it [not]ending*

theprof00 on 14 November 2008
Sardauk said:
theprof00 said:
value my friend it is all about perceived value. You don't sell something that good for nothing.

Xbox Love is nowhere near that kind of value.

 

... says the XBL non-user...

This is not what the thousands and thousands of XBL users think. The system generates more than a billion of revenues.

I don't think people pay for nothing ... but hey you can't beat the figures.

I play on Live all the time. I used to own a 360, and all my friends have 360.

All I am saying is that the cheapest 360 becomes the price of a ps3 when you introduce Live into the equation.

I just don't think it is worth it when you put the numbers together. It is justified when at the end of the month you look at your bill and it is only 8$. It's psychological marketing, making it seem like a small thing.

 

@Garnett

Being exclusive has benefits for the developer as well as the platform. Not every company has to be paid. In fact Sony is paying zilch for a lot of their now exclusives because they are smaller companies, like rockstar was. When companies get big, they like to make multiplatform games instead.

Can we get a mod or someone who knows a little bit more than the average user to come in here and back me up wtf.

 



Garnett on 14 November 2008
theprof00 said:
Sardauk said:
theprof00 said:
value my friend it is all about perceived value. You don't sell something that good for nothing.

Xbox Love is nowhere near that kind of value.

 

... says the XBL non-user...

This is not what the thousands and thousands of XBL users think. The system generates more than a billion of revenues.

I don't think people pay for nothing ... but hey you can't beat the figures.

I play on Live all the time. I used to own a 360, and all my friends have 360.

All I am saying is that the cheapest 360 becomes the price of a ps3 when you introduce Live into the equation.

I just don't think it is worth it when you put the numbers together. It is justified when at the end of the month you look at your bill and it is only 8$. It's psychological marketing, making it seem like a small thing.

 

@Garnett

Being exclusive has benefits for the developer as well as the platform. Not every company has to be paid. In fact Sony is paying zilch for a lot of their now exclusives because they are smaller companies, like rockstar was. When companies get big, they like to make multiplatform games instead.

Can we get a mod or someone who knows a little bit more than the average user to come in here and back me up wtf.

 

 

I can understand SMALL developers,but by GTA Vice city rawkstar was HUGE,No reason why keep it on the weakest console of the gen,The only advantage of being a exclusive developer is that you can master the system.



*Remember when the world was supposed to end on May 21st, 2011? Well click here to see our short parody video of it [not]ending*