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Microsoft defends Xbox One $500 price point--"We're over-delivering value"

Xbox boss Don Mattrick says when compared to other modern products, $500 is not a "ridiculous" price point.

8976 Comments

Microsoft's Xbox boss, Don Mattrick, has spoken out to defend the Xbox One's $500 price point, saying the company is in fact over-delivering value with the next-generation system.

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"It's a lower number than some of the analysts had forecasted," Mattrick said on Bloomberg TV. "We're over-delivering value against other choices I think consumers can get. Any modern product these days you look at it [and] $499 isn't a ridiculous price point. We're delivering thousands of dollars of value to people, so I think they're going to love it when they use it."

Competitor Sony will offer its PlayStation 4 at $400 this holiday season, but Mattrick believes consumers will choose the Xbox One for its suite of exclusive services and applications like an improved Xbox Live, as well as Skype, Twitch TV, SmartGlass, and Kinect.

"We're really making the living room your center of fun for your family," Mattrick said.

Also in the interview, Mattrick refers to the new Xbox One Halo title as Halo 5. This game was announced during Microsoft's E3 briefing last week only as "Halo Xbox One."

Every Xbox One will include a Kinect 2.0 sensor, while PS4 gamers will need to pay $60 to purchase a PlayStation Eye camera.

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hordaak

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Edited By hordaak

PLEASE PS3 OWNERS...PLAY YOUR SYSTEM..oh you cant...because it got BRICKED???? HAAAAAAAAAAAA HAAAAAAAAAAAAAAAA


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Bigevil1978

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@hordaak Really never actually had a PS3 brick on me and YEP i updated my 1Tb HDD, worked just fine.....Unlike my 360 which had to be replaced 5 separate times because M$ makes shit hardware.........Better hope there's no RROD 2.0

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csward

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@hordaak Never had one brick you troll. My 360 red ringed twice though. Haven't bought a M$ product since.

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DWalker131

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@csward @hordaak i think he was referring to the 4.45 update thats been advertised everywhere

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bakagami

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Edited By bakagami

@DWalker131 @csward @hordaak yeah, it happens sometimes. Like the Nov 2006 firmware update that bricked the Xbox360

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blackzio

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hal-9000 still creeps me out, just remove the damn thing, release for a lower value and i'll consider buying both.

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duuuuuuude1

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@blackzio You can't remove it...it has to be connected for the system to work.

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blackzio

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@duuuuuuude1 @blackzio that's the problem, why it has to be connected? Make it optional, if i don't want voice command, make me that option. Microsoft is already giving for example skype calls to the NSA. It's not like im a drug dealer who is putting an xbox on my meth lab, but still, i don't want a camera/microphone always listening to me.

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Trance_Circa

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@blackzio @duuuuuuude1 Exactly, even if I have nothing to hide, I still don't want an always on mic/camera watching me.

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gl02ru

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I do wonder though if data recorded on the xbox one will be able to be used as evidence in criminal prosecutions. that would be interesting to ponder me thinks.

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gl02ru

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I was always planning on buying both systems. Too many exclusives to miss out on. Only decision was which one first. Since MS lifted their DRM crap, as an xbox fanboy I guess I'll get the Xbone first. Might put tape on the camera tho LOL.

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blablazer

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@gl02ru Love your solid answer. And im a PS fanboy. Stay true to your roots. I will only be buying the PS4 i just like the PS games more thats it for me. ;)

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lawfrye

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Edited By lawfrye

"no 24-hour check in anymore.. now what will you guys cry about"

How about no hardcopy games lets start with that, and we can also talk about the fact that you will not be buying ANY used games anymore. M$ think they can tell you what you can do with your money and what you PAID for...oh yea you don't own anything anymore your just paying for it like an asshole.

"We're over-delivering value"...no your just greedy and as usual ripping people off.

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ultralugia

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Edited By ultralugia

@lawfrye "no 24-hour check in anymore.. now what will you guys cry about" is that exactly what microsoft said cause if it is then that would be very disrespectful of us(possibly but unlikely)PAYING gamers, or is that what someone else said?(dont insult me if i dont know)

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HeadShotta

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Edited By HeadShotta

@lawfrye People like you are the real reaosn there is a problem. These Keyboard warriors who bask in their own ignorance rather than doing any sort of research.. There will still be hard copies and there are no used game restrictions on them either. Go sit your fkickle ass in the corner.

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thenephariouson

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@lawfrye

lol

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valknight

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Edited By valknight

http://news.xbox.com/2013/06/update - no 24-hour check in anymore.. now what will you guys cry about?

And no regional restrictions.

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thenephariouson

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@valknight

Although a little Humble Pie is in order, its good that MS have come out and have officially announced these changes.

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valknight

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@thenephariouson @valknight I was going to get mine with or without the online check. I don't care. I'm online 99 percent of the time anyways, and when i'm not, I am getting laid.. most of the kids on here can't say that lol.

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thenephariouson

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@valknight @thenephariouson

lol, same here, to be honest 95% of my gaming is done online with friends etc anyway so the original DRM stance didn't really bother me personally.

Ultimately I think once this news becomes more widespread, it will have a large and positive impact

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kohle36

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'He added that Microsoft is "really making the living room your center of fun for your family," because before Xbox One came along, our family used the f*cking bathroom.'

-Jim Sterling

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OneStrong2

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What's that river in Egypt named again?

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cratecruncher

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I would love to have seen Mattrick's face the moment he heard Sony wouldn't match $500 with their new rig. "That's not how we play the game Sony! Don't you guys go to duopoly school!"

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Daveof89

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I'm hoping it'll be more like most of the new 360 games, where it'll just say "better with kinect".

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gamekingpin

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Its funny how they say they are over delivering "value". The last time I checked it was the consumer's demand that determines what is valuable in the market. All I want is an awesome gaming console thats what I value in this situation. Therefore, smartglass is of no value to me because it is not something I need or want or care about. Skype is available on almost every device I own already and I dont use it, its of no value to me either. I already pay for TV service so Im not looking for my gaming console to provide it for me, so again that is of no value to me. Does microsoft think we are going to just throw away all of our other devices to replace them all with the xb one. Some of us have just purchased these devices and it would be a bit of a gamble to get rid of them all in hopes that an xb one can replace them all wihtout a problem. What if you replace these devices for the all in one system and then end up having another RROD type of epidemic with the new console? you just went from having all media to no media in one failed device. Im not taking that risk.

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gamekingpin

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Microsoft, people have to really want and demand these features of you for them to actually have value to us. If people could care less then there is no real value. Thats like increasing the price of a car because you added cup holders that the purchaser may or may not ever use. So when you say value, who is it valuable to. Drop your price and call these features an added bonus and you may have changed the game, but to charge 100 more for something we could absolutly do without is just you leaching off of the consumer.

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andfx8

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@gamekingpin They're not adding cupholders, they're adding the ability to traverse not just land, but water also... sorta speak

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Balbaar0912

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Edited By Balbaar0912

@andfx8 @gamekingpin Indeed, but we already have boats don't we?

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lostn

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It's the exact same argument Sony made last gen with the $600 PS3. When that thing launched, a Bluray player alone cost $1000. You are getting great value, it's just that not everyone wants the things you're offering.

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lostn

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I'm not buying a camera. Don't need it, don't want it. Don't force it on me.

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fbgbdk4

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Ok, enough about Xbox One and Done. This is old news. When Xbox 2 will come out?

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ultralugia

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@fbgbdk4 Dont quote me on it but judgeing by the publics reaction to the xbox 1 its likely that there wont be a xbox 2 but its not impossible.

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GONtheSKYLORD

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Maybe Don should stop trying to force people to see value in features they don't want.

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latinchaos1

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Edited By latinchaos1

why everyone complaining over the new counsels? Getting the xbox for better community players and content,i got internet, tv, skype, i might as well use it, so why not make it easier then to move around to different devices? when u can do it in one device, that sounds good to me! and i can play with community and Friends.

get ur ps4 n stop whining, u happy cuz u get to play alone? and play older games u probably dont play anymore? den go ahead have fun with it.

either everyone gets to play however they like

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tommynj

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Edited By tommynj

The price isn't bad but what makes it look bad is that Sony is undercutting Microsoft by a significant amount. The Xbox One is offering more than what Sony is offering in terms of value. Well I am kind of glad all the kiddies will be heading over to Sony because of the cheaper price. Perhaps Xox Live community will improve greatly. Quality > quantity.

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GONtheSKYLORD

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@tommynj

Yeah right. You kids are the ones who are too young to realize when you are getting F****D. It's something you don't learn to recognize until you enter the real world.

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dpsuurhoff

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@tommynj The issue for me is that if I want an Xbox One I must also get a Kinect because it's a part of the package. The TV feature is cool, but I don't live in the US so I wouldn't be able to utilize that feature for at least a year after release. So essentially I'm paying roughly and extra $100 for something I can't even use.

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Belokkian

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@tommynj

There's value only if I own my games. With MS policies it's renting the games for 60 bucks. There's no way I'm going this direction.

I don't want a mandatory SpyCam and I have a Smart TV. So there's nothing new MS that has to offer in order to sweeten the deal.


**** them!

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phillharvey

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@Belokkian @tommynj do you use Itunes? everything you buy in contract form is a means of only buying the right to use it for as long as "they" intend. they can change that contract and take away what you paid for...in a nut shell. Every time I use Itunes they seem to have a NEW contract. The days of buying something and owning it are gone. If you cant beat them join them.

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alucardswrath

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@phillharvey Sheep

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fbgbdk4

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@phillharvey @Belokkian @tommynj Actually MS is the one being beaten in the pre-orders charts...

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avalanche814

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@tommynj Have fun with your 500$ cable box, ill stick with my already owned cable and PS4 that actually plays video games. But hey, its not all that bad, you get a camera to watch you doing whatever you do in the privacy of your own home. There could never be any abuse of that right?

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phillharvey

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@avalanche814 @tommynj Right!!! gamers are V.I.P. We all do super secret stuff and cant let anybody know our plans to take over the world.

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Reuwsaat

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Edited By Reuwsaat

I don't want a "funny living room", I want a console to play my games as it always been since Atari; "over-delivering value against other choices I think consumers can get" If it's so amazing, how come pre-orders from PS4 are twice as much right now? Remember how revolutionary and awesome your company thought Windows 8 was? And how many consumers shared your point of view, alongside the market share of your system nowadays? Could you tell me again where is the guy who led that project? Look at yourself in the mirror.

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LittleLuci

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@Reuwsaat Office 365 and Windows 8 are the only examples you need to show that MS don't care about users anymore... they are just trying to get a piece of the "Cloud" pie! Again all they acre about is the bottom dollar not the consumer!

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s2i2p2i2o

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Edited By s2i2p2i2o

@LittleLuci @Reuwsaat Are you kdding? Windows 8 is AMAZING! Every day is an adventure! Every time you install a game you get the excitement of "oooh I wonder if it will work!!!". And the magical journey you take every time you want to find a feature you havn't used before, like when you wanted to turn off your computer for the first time. "Now where is that darn tur off button? Is it here? No. Here then? No. Hmmm, this is such a fantastic feeling. I'm really enjoying my new OS. Ooooh it what hiding in a hidden meny, under the "settings" table. THAT IS SUCH AN AMAZING AND LOGICAL PLACE TO PUT IT :D ".

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victorcom

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Region lock, mandatory check in every 24 hours-internet connection always required and Low powered GPU 1.2 Teraflops and RAM DDR3 are the major drawbacks. 500$ is not a big issue because you get a full set of Kinect and controller. Used games is also not a problem for many, as there is no difference between used games and pirate games. Mainly the hardware specs let me decide in favor of PS4. A GTX 680 costs 500$, PS4 also sells for the same price.

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avalanche814

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@victorcom and it sounds like xbox is trying to convince us that this system is cheap for it value. Shouldn't we THE CONSUMER, be the ones to decide its value? Afterall we are the ones buying it.

," Mattrick said on Bloomberg TV. "We're over-delivering value against other choices I think consumers can get. Any modern product these days you look at it [and] $499 isn't a ridiculous price point. We're delivering thousands of dollars of value to people, so I think they're going to love it when they use it."

yeah right

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victorcom

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@avalanche814 @victorcom May be they will give many exclusive titles like Kinect adventures. May be they should have allowed us to decide whether we want it or not. Still its not a worst decision as much as region lock and mandatory internet connection.

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avalanche814

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@victorcom @avalanche814 Lol well said Vic, I was hyped at the last console war because the systems were so similar, but it seems like a no brainer this decade. PS4 lets me play offline, used games, great graphics, good titles, and I don't need a camera turned on in my living room in order to play friggin pacman arcade lol.

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