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Drop The Price ASAP

November 19, 2013

I agree so completely with these guys about what is in MS’s best interest as regards their One, I have to give this its own post.

We are going to be getting our own Xbro Ones. It will happen. But, I hope that when the dust clears, MS has the brains to realize that taking $100 on the chin will give them at least $1000 for bling on their chests. And I hope that the dust clears before we have to refit our Man Cave with Ones.

The first half of this discussion is embedded after the jump, along with their thoughts on Sony’s machine.

  1. Blankman permalink*
    November 20, 2013 12:12 am

    Sorry to kick you and Pachter off of your soapboxes about the Kinect, but it ain’t gonna happen. MS simply has too much money invested in the R&D of the peripheral to simply take it on the chin. The consumer’s $100 is a solid investment in what he/she will get in return, as in terms of technology. The Kinect was part of what started setting the 360 apart from its competitors. Although it wasn’t fully realized in its first version, it may get closer to its intended vision in this soon-to-be current generation. People need to stop throwing the baby out with the bath water and relax. Let MS prove that it’s offering as many tools for developers to play with. Since every XB1 will come with a Kinect, developers will hopefully come up with imaginative and innovative ways to incorporate that technology into their ames.

    Sony had to ditch their plan of including their Kinect knockoff because their tech wasn’t anywhere close to what Kinect 2.0 could offer. Zos even pointed out that industry insiders dissected the new Eye Toy camera and it was mostly an empty shell. Now Sony is going to be offering it for $60 which won’t even be adopted by the masses. Even Sony fanbois will steer clear of it. By opting to leave that peripheral out in efforts to bring the price lower than Xbox One, they essentially doomed that Eye peripheral.

    You keep championing the reason to ditch the Kinect due to privacy issues and what not, Suns. Step down from the ledge and give it a chance. $100 only buys you a game and a half. I think it’s worth the price of admission to see what the future holds.

    BTW: Pachter has always been full of sh!t in his projections and “expertise.” I can’t believe investment groups actually pay him to forecast electronic entertainment. We can do a way better job than that dude. He’s been right about only one thing that comes to mind. He predicted that the Wii U would be dead on arrival. Then again, everybody predicted that would happen. Does that make us “experts?”

  2. November 20, 2013 5:35 am

    Once I saw Pachter was in those videos, I didn’t even bother to watch….. The smug and all knowing one….

    The pricing pain of the Xbox one is totally understood for Mr. Suns. 4 new xbox’s needed is a LOT of cash. First you’ve got the 4 x $500 + needing a whole new stable of games. Conservatively in the first year, that is 3 games per person x 4 guys x $60. Year one cost to Suns could be $3,000 Or from a budget perspective $250 per month. That’s a Car payment for many people.

    As exciting as having a new gaming system is, I fear for the first year, we’ll have a “fractured” Stranded, because we’re not all going to be playing the same stuff…..

  3. November 20, 2013 5:40 am

    Ha ha! It is great to hear from you, Blankman, even if it is just to call me on my sh!t. (EDIT: Cheers, Kenai, you posted while I was writing!)

    What you say, Blankman, will probably be the way it unfolds. However, that is bean-counter, never-touched-a-controller, business degree (as opposed to entrepreneurial experience), executive and or fanboi talk. That is not what they actually should do.

    First of all, don’t misunderstand me. I am not saying ditch the Kinect. On that point, I don’t agree with Pachter. I have come to terms with Microsoft’s decision to stay the course. I have always understood that no optional peripheral has ever succeeded for any console system. If they want Kinect to succeed, it must be sold with every machine. And, since they have made it unpluggable, even those who don’t want to use it won’t have to. But, it also means that they must eat the cost of it.

    Where will MS make all their money? It won’t be on selling consoles even if they were to sell 100 million units at 600 bucks a piece.

    MS will make their money on selling games, subscriptions, services, and digital content, through their Trojan horse. (We have spent about $1400 on the consoles and about $4000 on the games – and that is just the games, not the XBL fees or the DLC map packs, and we don’t even buy Avatar crap, or subscribe to Netflix). I would imagine your software-and-services to console-hardware dollar ratio is considerably higher than ours! And that is where the margin of profit is huge, and where the customer never stops spending. I don’t know what percent of potential customers they might be losing because of the $100 price difference, but if I were in the decision making chair, I would be terrified to risk finding out.

    As for R&D expenditures, they have nothing to do with what MS should do now. That money is spent whether MS sells 1 unit or 100 million. The only thing they can do now is to make the most money possible, and to do that, they need to get 10s of millions of units in people’s living room – and set up a quick and steady drip of cash flowing from everyone’s living room into their pockets – ASAP.

    Six months from now, if at the current prices the One is keeping up with the PS4 in sales (or surpassing them), then I will have been wrong on this point (though I would wonder how much more they might have sold had they been selling at $400).

    If on the other hand, the One is down buy three or four hundred thousand units on the PS4 in the first week, if I were an exec, I would be writing my speech about how Microsoft listens to their customers, even on price points. And I would slash that sucker so that I could go for the long con not just the short pocket-change con on the street corner (where snot boogie got shot).

    As Jason mentions in the video, with their load of cash, they could and should get those units out there and set up the steady drip as soon as possible. I am not talking from a consumer point of view, but from a money maker’s point of view. “Giving shit away” is how Microsoft built their empire. MSDOS. If Gates had nickel and dimed the PC customers in the ’80s, who knows what other OSes might be in use today. The monopolistic sales of Windows 3.1 and Windows 95 was all because they gave DOS away.

    • Blankman permalink*
      November 20, 2013 8:21 pm

      Lowering the price would essentially discount the hardware package. This would be a huge negative because it would cast the impression that MS doesn’t believe in its own technology path. There’s a report that Sony is making around $18 profit off of each unit sold, and that’s with the elimination of their Eye Toy camera peripheral. Everyone knows that Sony is in dire straits because of their hubris with the PS3, their Bravia HDTVs are facing tough competition, and their cell phone partnership with Ericsson has essentially gone bust. MS is not remotely close to Sony’s financial woes or hemmoraging money in any way. Can you imagine the ridicule they would get if they took the Kinect cost on the chin as you, Pachter, & others have been suggesting? In contrast, many game reviewers have expressed pleasant surprise on the capabilities of the Kinect. You can read them for yourself as the embargo has already been lifted. Even simple UI efficiency has been increased with the use of Kinect. MS is determined to make the Kinect a true feature that no other console can offer on their own machines.

    • November 21, 2013 5:28 am

      Amen. Hahaha!

      This all has been such a fun debate, anticipation, conversation for the Past Year!

      7 Years together and better than Ever!!

      Love you guys!!

  4. November 20, 2013 11:38 pm

    Thanks, Kenny. You make a good point about perception.

    Cheers! Looking forward to your reviews!

  5. Average permalink*
    November 21, 2013 4:22 pm

    Can you do cross platform chat? Say from the one to someone on a 360?

    Also, Jimmy, are you getting a One now?!

    • November 21, 2013 6:09 pm

      Not voice, but you can still sent text messages as far as I know.

    • November 22, 2013 8:57 am

      Yes!! Just found out that bonus I’m waiting for in January, will also have some of that bonus distributed on my paycheck coming in on Monday.

      Question is… Will there be any Xboxones available?!!! I remember the 360 launch, and I couldn’t get mine till I just happened to find One sitting on a Kmart shelf in mid January….

      Any ideas on the best / quickest way to get one??????!!!

    • Blankman permalink*
      November 22, 2013 1:06 pm

      Buy one from a brick & mortar store like Best Buy or Target ASAP. They are still reporting that they have extra inventory after the midnight launch. Put it on credit card & pay the full amount when you get the bill because you would have received your bonus by then. You MUST do this before Black Friday! Otherwise, you can forget about an XB1 until after January 2014. People are already scooping them up to gouge parents that are desperately looking to place one under the tree.

    • Average permalink*
      November 24, 2013 1:00 pm

      I have an extra one come get it!
      Best Buy was there I got one in brick and mortar stores, I ordered online from BB too.

      Going to attempt to sell it on Kijiji for a small profit.

  6. November 23, 2013 1:36 am

    The launch day was a great success.

    So, how is it people?!

    • Average permalink*
      November 24, 2013 1:06 pm

      Suns, I won’t write everything here as I am about to jump into BF4.

      BF4 crashes quite frequently, I was online, looks like it’s similar to PC issues that were fixed, PS4 and XB1 still have the issue.

      It looks GREAT, Rush with 32 people is a blast, and the maps are just gorgeous. It really is good. Some of the new features are brilliant, the new triggers and sticks are nice, the bumpers are tough to get used to but they feel better and I think they’ll be nice once they get beat and worked in a bit.

      The interface and loading is really fast in the dashboard.

      DICE has still not fucking @#*$#@(*$@# figured out how to do friends list, those damn guys can build a map with 64 peoples that’s smooth as glass but joining friends or creating a party, F#$@#ing non-existent unless you use the build in MS party. More on that in the full write up, but it’s cumbersome.

      Uhm, the kinect, works flawlessly for me, I actually had my gf over showing her and she thought it was pretty cool. I bought and DL’d both AC4 and Forza. I swear I could not have gone to the store (Wal-Mart 4 mins across town) and bought the game before I was already playing it as it DL’d. Very smooth.

      Friends on XB is cumbersome, hopefully that’s something they address. Notifications can placed who knows where and I can’t figure out how to quick access them without returning to home.

      Maybe someone else knows how.

      However, I would advise everything to get it. I’m enjoying it that much.

      AC4 is F*#$(#$#( beautiful as well, and Forza 5 if you like cars, ugh upon first boot up you’ll know what I mean. It is gorgeous gorgeous gorgeous.

    • November 24, 2013 4:15 pm

      Thanks for the impressions, Kyle! Great to see everyone enjoying it this weekend. I didn’t know that you and Baxter would be picking one up at launch! WOOT!

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