Microsoft believes subscription model is the future of Xbox business

Kinsaras

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Microsoft has been slowly testing the waters with a subscription based contract model with the Xbox 360. Earlier this year, Microsoft rolled out a $99 Xbox 360 contract deal where you would have to pay $15 per month for two years.

Microsoft offered the 4GB Xbox 360 and Kinect bundle, which retailed for $299 earlier this year before the temporary price drop to $250 for $99 and a 2-year contract at Microsoft retail stores.

While the initial purchase price is just a $100 bucks, after everything is said and done the total price will be $460 which also includes Xbox Live. You are basically paying $40 to $60 more for going the contact route in the end.

You can read the rest here

http://gamer.blorge.com/2012/10/24/...ription-model-is-the-future-of-xbox-business/
 

Trepidati0n

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Isn't paying "more at the end" the point of any subscription model? It has been shown time and time again that buying a phone and going month to month is always cheaper than going under contract for the same level of sevice. Guess we'll see the rage soon enough as people cry about this.
 

NickJames

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Good for cheap people and those who use Xbox Live religiously but I only go on there for about a week every 6 months when a major release comes out.
 

dr.stevil

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man... MS is on a roll lately.


I will NEVER pay a monthly sub for game hardware. No way in hell.
 

Ticker305

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the rich get richer and the poor get poorer. Next to those rent to own scams where an xbox will run you like 800 at the end of the lease, this seems like a hell of a deal. Hope this takes off so the suckers can subsidize and keep the system cost lower for the rest of us savy consumers who are patient and acttually still know how to save up for something we want the old fashioned way.
 

Hornet

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Well, so long as Microsoft don't go full retard and make their next gen console sub-only, I guess its fine having an option.
 

Maplehamwich

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While I'm not surprised to be seeing this model continuing, I am suitably disheartened.

We've seen the games go to the low cost (re-cycled inputs, low manufacturing cost, etc) and subscription route, now we're going to see that more and more in hardware. I'm guessing next gen consoles are a major turd in terms of hardware advancement. What we'll likely see is more media and internet integration, more control gimmicks and a bump up to 4-5 year old technology rather than the current 7 year old tech. Of course, it will be eaten up, but will signal the end of the "game" console and the introduction of the "media" console. Say Hello to the future!
 

Blkout

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This is absolutely stupid and I can't believe anyone that can do the math would pay almost $100 more to purchase an Xbox this way compared to paying full price up front and buying a sub to LIVE every year. 360 Bundle is $250 right now, a year of LIVE is $40-50 depending on the deal you catch, x2 is $90-100 so total price is $340-350 compared to the new subscription plan which makes you pay $460 over the course of 2 years. Its no different than taking out a loan and paying interest over the course of 2 years, you pay more in the end for slightly smaller upfront investment.
 

DeathPrincess

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Pay monthly for p2p multiplayer on games you "own", on a connection you "own" with a console you "own".

If people didn't pay for this (also ad supported) service, it wouldn't exist and multiplayer would be free, like everywhere else...
 

Blkout

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Pay monthly for p2p multiplayer on games you "own", on a connection you "own" with a console you "own".

If people didn't pay for this (also ad supported) service, it wouldn't exist and multiplayer would be free, like everywhere else...

One major reason I don't pay for P2P play online games. Sure I'm only one person so my efforts may not mean much but I can't get behind that business model and won't. Paying for LIVE is about as far as I go if I want to pay to play online, I don't feel that $3-4 per month for LIVE is that expensive when it applies to all of my games and not just a single game. I'll never understand how people have thrown away so much money over the years on games like WoW, its ridiculous if you add up total cost in the end.
 

DeathPrincess

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One major reason I don't pay for P2P play online games. Sure I'm only one person so my efforts may not mean much but I can't get behind that business model and won't. Paying for LIVE is about as far as I go if I want to pay to play online, I don't feel that $3-4 per month for LIVE is that expensive when it applies to all of my games and not just a single game. I'll never understand how people have thrown away so much money over the years on games like WoW, its ridiculous if you add up total cost in the end.

Live is p2p!

I do see the reason if the MMORPG is free, but when they charge for the base game, then charge monthly, it seems a little silly. I like to pay for stuff once, which is why f2p games are annoying. But the worst possible model is having ads, paying monthly annd paying for the "service" and it's being p2p, aka LIVE (aka triple dipping). :D

Everyone paying for it is sending them a huge "i'm fine with you doing this" message.
 

TwistedAegis

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Ugh, everything going this way and it's a horrible deal for consumers in the end. Planned obsolesence, nothing is truly owned by you, a lien on everything. House prices are way up yet the quality of construction is way down. Look at the "antiques" that are a hundred years old and still much better construction quality than even brand new "luxury" brand crap that costs thousands.

Sorry very OT, but this trend is everywhere and I don't like it at all...you're basically left hemorrhaging money for any service or product that you want to use.
 

H-street

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phone companies been doing this since the dawn of time

got my galaxy s3 through att for 100$ but after my 2 years of contract will be substantially more than if i would have just bought the phone..
 

digiram

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When you can get live cards for 40 bucks at a time on amazon and such or get the fam deal and share with friends that can chip in. This is a deal for suckers.
 

Parmenides

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Can't forget that by the end of 2 years the market value of the 360 will be much less too. So the customer loses in two ways.
 

hdawg06

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Well with the elimination of physical media this could be a viable alternative. Although I honestly don't see consoles lasting more than 2 more generations tops. By that time we may have just as good of processors in HDTVs, or Ultra HDTV if they catch on any time soon. Think the first releases this year or next.
 

TheBuzzer

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it is all because of mmorpgs, they started the whole monthly fee thing.
 

SBSuperfly

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It would be interesting to see how they handle hardware failure for a subscription service. If the failure rates are anywhere near the RROD rates of the 360, Microsoft would lose a lot of money replacing systems or letting people out of subscriptions before the hardware is paid for or both.
 

wonderfield

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Isn't paying "more at the end" the point of any subscription model? It has been shown time and time again that buying a phone and going month to month is always cheaper than going under contract for the same level of sevice.
Depends on the phone and on the service, really. In certain cases major carrier subsidization makes sense from a value perspective. I understand the point you're trying to make, though.

I don't mind paying monthly subscription fees, but it all comes down to the value equation: do I or do I not get a good enough value for the money to warrant spending it? The answer varies and has to be evaluated on a per-case basis.
 

Plague_Injected

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This scheme isn't much different than deferred-payment plans, except here MS wants a $99 deposit. If MS wants to make this an option then sure go ahead, but if this is going to be the only way to buy one of its products in the future, then MS can go eat a proverbial.
 

Blkout

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Live is p2p!

I do see the reason if the MMORPG is free, but when they charge for the base game, then charge monthly, it seems a little silly. I like to pay for stuff once, which is why f2p games are annoying. But the worst possible model is having ads, paying monthly annd paying for the "service" and it's being p2p, aka LIVE (aka triple dipping). :D

Everyone paying for it is sending them a huge "i'm fine with you doing this" message.

I think you need to read my original post more carefully.
 
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