Consoles at lower cost with monthly contract

quad_red

Could this be a sign of things to come?

http://www.eurogamer.net/articles/2012-05-02-microsoft-to-launch-USD99-xbox-360-subsidised-by-monthly-subscription-report

Now, this example is complete madness from a practical point of view in most ways. You still have to pay an upfront cost, then you get locked into a contract for two years. And the overall amount is more than you would pay for just buying the hardware and Live subscription separately.

But anyway - could this be a way of delivering a high tech, high value, high cost console to the masses? ie. These are tighter times than boom 2005/06.

Can you see Sony or MS trundling out new consoles for 400/500 quid when Nintendo wheel out the Wii U for 200 quid?

Very few people pay 600/800 quid for a new iPhone.

But they get a 'free'/;'low cost' iphone with a two year contract en masse.

What do people think?

Helix

sure youd get a better deal on the hp

2smiggy

don't like been stuck with a 2 year contract , but with the likes of the RROD on the xbox, a person might have some chance of getting a replacement if something happens your console during the contract.

jaykhunter

It seems silly but maybe MS know better. Leasing a console seems really frivolous. It's not like a car or something. I can't see people flocking to this, especially for a console that's that old. Surely if money's that tight you'd just get a 2nd hand one?

Genghiz Cohen

I actually really like that idea.
Not for a current gen console or anything, but the next gen €600 consoles, I could push up day-1 sales by a nice bit.

hightower1

For people on lower incomes its a great idea tbh, its allows access to tech they wouldnt have the option to before hand. Like hire purcase as far as I can see it.

If they released the 720 at a 700eur price point with savage specs I would consider doing something like this.

kippy

hightower1 wrote: »

For people on lower incomes its a great idea tbh, its allows access to tech they wouldnt have the option to before hand. Like hire purcase as far as I can see it.

If they released the 720 at a 700eur price point with savage specs I would consider doing something like this.

People on lower incomes tend to have more important things to spend money on.
After all, consoles are not, strangely enough, key to surviving.

hightower1

kippy wrote: »

People on lower incomes tend to have more important things to spend money on.
After all, consoles are not, strangely enough, key to surviving.

Just becasue one is on a lower income doesnt mean they have no disposable cash.... just less dsposable cash than higher income brackets.

You seem to be confusing someone on a lower income bracket with someone on the breadline with no post bills cash.

kippy

hightower1 wrote: »

Just becasue one is on a lower income doesnt mean they have no disposable cash.... just less dsposable cash than higher income brackets.

You seem to be confusing someone on a lower income bracket with someone on the breadline with no post bills cash.

It depends on your definition of "lower income" I suppose.

Nody

kippy wrote: »

People on lower incomes tend to have more important things to spend money on.
After all, consoles are not, strangely enough, key to surviving.

Don't usually stop people buying such items anyway...

Retr0gamer

Fags, alcohol and Sky plus subscritpion trump before console purchases.

quad_red

Er.... Ok.

I usually get sim free phones as the whole free with contract model is usually bunkum. Which is why I get why people do it.

If MS are positioning Live as the main content delivery vehicle in the living room etc one that people would be more inclined to accept paying a monthly fee for, then adding the cost of the hardware in broken up payments makes sort of sense.

If it reduces the apparent up front cost.

Sarn

I can see this working well with the next gen consoles. Get in on day one and your console is good for years, it also ensures that MS will get a huge chunk of the market upfront. Unlike phones, there won't be a new better model just around the corner, bar from Sony or Nintendo.

chrislad

The idea is sound. The current implementation, not so much.

sarumite

chrislad wrote: »

The idea is sound. The current implementation, not so much.

I agree. A 4gb arcade edition with a 2 year subscription to xbox live gold at $459 sounds steep.

Grumpypants

I know a lot of people who paid 3-400+ euro on a Xbox and continue to pay a subscription every month so they can play the thing online too, then pay extra to watch Sky and Netflix. So a $99 Xbox and a $15 a month subscription is not that different.

If they had a package where people paid $15 dollars a month and got their Gold subscription (which costs between 4-8 dollars)and access to a couple of premiership matches on ESPN and box sets/films from the video store. I'm pretty sure a lot of people would sign up.

sarumite

Grumpypants wrote: »

I know a lot of people who paid 3-400+ euro on a Xbox and continue to pay a subscription every month so they can play the thing online too, then pay extra to watch Sky and Netflix. So a $99 Xbox and a $15 a month subscription is not that different.

If they had a package where people paid $15 dollars a month and got their Gold subscription (which costs between 4-8 dollars)and access to a couple of premiership matches on ESPN and box sets/films from the video store. I'm pretty sure a lot of people would sign up.

Looking on amazon.com at the moment there is a 250gb Xbox bundle with 2 games and 3 months xbox live for under $300. Add $96 for 2 more years of a live subscription and you still have almost $70 left over for the same price. The current deal being offered makes very little sense considering what you can get for the same money elsewhere.

Grumpypants

sarumite wrote: »

Looking on amazon.com at the moment there is a 250gb Xbox bundle with 2 games and 3 months xbox live for under $300. Add $96 for 2 more years of a live subscription and you still have almost $70 left over for the same price. The current deal being offered makes very little sense considering what you can get for the same money elsewhere.

True, it will come down to just what "possibly some additional streaming content from cable providers or sports package providers" actually contains.

If they offered a PS+ style premium service where you got a few extra arcade games etc it might be closer in value. But i think its just to get a few new xbox's out there at a new price range.

smileyj1987

I think it could work but you would have to provide a few games in the contract to make it work . I mean if it didn't offer a few games i would say they would get very few subscriptions because to me the people who would be signing up to this are on a tight budget and can't really afford to buy the console outright with all the bells and whistles .

Potential-Monke

As Grumpy and Smiley said above, there would have to be some free games thrown in. I only signed up to PS+ on the 29/04 for 3 months, €14.99, and i've already downloaded about €30 worth of free games... It's paid for itself twice over already.

It's a good idea, but the deal the the moment is no good. And, i've no interest in tv/sports on the xbox, that's what the (now dead but soon to be revived) laptop is for.

TheDoc

The idea while good in theory is impractical.

If you cannot afford to buy a console you simply cannot afford to play games, simples.

Typically these sort of plans will give you relieve on a short term cost but end up being more in the long term.

It might be me, I typically turn my nose at finance and long term contracts when buying things, I just pay the cash up front and know that its mine.

Nody

TheDoc wrote: »

The idea while good in theory is impractical.

If you cannot afford to buy a console you simply cannot afford to play games, simples.

Typically these sort of plans will give you relieve on a short term cost but end up being more in the long term.

It might be me, I typically turn my nose at finance and long term contracts when buying things, I just pay the cash up front and know that its mine.

It is sadly; a significant portion of people don't have even basic economical awareness such as which of these two offers is the best one, 10% off on a 250 EUR item or 30 EUR discount on same item.

the_syco

jaykhunter wrote: »

I can't see people flocking to this, especially for a console that's that old.

I'm thinking it's a great idea as a trial, before they role out the their new system. If people could get the brand new Eggs Box for $99, they'd do so en masse.

kippy wrote: »

People on lower incomes tend to have more important things to spend money on.
After all, consoles are not, strangely enough, key to surviving.

Too logical. You must remember that the lower someone gets in income, the more they spend on christmas lights. Logic doesn't always come into it.

On top of that, people who are usually broke, are often broke due to buying these "cheap" items on a whim, even if it costs them long term.

TheDoc wrote: »

If you cannot afford to buy a console you simply cannot afford to play games, simples.

As I've said, most people who are broke are broke because they buy stuff on a whim. Heck, I should know; I avoid shops full of "cheap" shiney tech toys so I don't buy anything :pac: