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“We’re over-delivering value”: Mattrick defends Xbox One pricing

Monday, 17th June 2013 16:51 GMT By Dave Cook

Xbox One’s $499 / £429 price-point has received some flack since it was confirmed last week, but Microsoft’s Don Mattrick believes the numbers stack up as the company is over-delivering value.

Speaking with Bloomberg TV, Mattrick said, It’s a lower number than some of the analysts had forecasted. 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.”

Meanwhile Phil Spencer has said that consumers will only see the true value of Xbox One once its sitting on retailers shelves and all the ins and outs of the console are laid bare.

What do you think?

Thanks Gamespot.

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62 Comments

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  1. Bloobat

    That’s one way of defending it…

    #1 1 year ago
  2. fihar

    Well, the actual console itself is probably as ‘cheap’ as the PS4. It’s the Kinect that is the issue here.

    #2 1 year ago
  3. viralshag

    While I don’t think the price is that bad, I think a Kinect-less version would have been much better received as an option.

    #3 1 year ago
  4. Aullah

    What value? The ones are only accessable in the US?

    #4 1 year ago
  5. unacomn

    “We’re over-delivering value”

    “We’re taking a huge loss on each sale”

    #5 1 year ago
  6. Kanok

    Shut up Don, you’re just a piece of shit.

    #6 1 year ago
  7. No_PUDding

    I don’t know what devices you’re talking about that are £430.

    I mean that’s a brand new smartphone, and even those are unattainable to msot, with a contract.

    To be honest I think the PS4 is too expensive. Even though I acknowledge as a commodity, it’s not bad value.

    #7 1 year ago
  8. Klaxusprime

    This interview is one week old… and you call them news… DUH!

    #8 1 year ago
  9. hives

    You are forcing Kinect into our living rooms and that’s why Xbone costs 499$.

    #9 1 year ago
  10. Gheritt White

    @6: This.

    #10 1 year ago
  11. Dave Cook

    @8 It’s a quote we missed the first time round. We strive to catch it all. #dealwithit ;)

    #11 1 year ago
  12. Anchor

    The 2nd and 3rd comments are exactly my thoughts! Kinekt pushes the price up. It’s such a shame, the X1 has so much potential…

    #12 1 year ago
  13. Cobra951

    This is exactly what Sony did–with the PS3 (three). They overdelivered value that consumers did not want to pay for. Bluray was not needed to sell a console 7 years ago. The tech was too expensive then, and added a couple of hundred dollars to the cost of the product. Only HD-movie buffs had to have it. Everyone else could live just fine with DVD-based games. They have paid dearly for this error.

    #13 1 year ago
  14. jevonski

    No one asked for what they’re delivering though.

    #14 1 year ago
  15. backup

    xbox1 can’t deliver anything other than RROD

    #15 1 year ago
  16. Klaxusprime

    @11 I will but I hope nobody takes your words 1 week later when context may have changed so much… #beingoodfaith ;)

    #16 1 year ago
  17. Rudemir

    The price might be fair for all the functions of the Xbox One however I have no interest in watching TV through my console, which won’t be possible in the Netherlands in the forseeable future, and yet I have to pay for it. I have no interest in Kinect voice or movement controls and yet I have to pay for it. So maybe the price is fair for the Xbox One but the prodcut is not for me.

    #17 1 year ago
  18. Belmont

    Or perhaps you are missing the point Don,The problem is that You don’t have Value !

    #18 1 year ago
  19. Kanok

    What do i think? it’s deeply flawed.!!!

    #19 1 year ago
  20. Bomba Luigi

    I do believe that the Xbox One has a lot of Value und would be worth the Price, but MS is destroing every little Bit of Value with their Restrictions. Thats the Point Don is missing in my Opinion, nothing is worth everything.

    Hell, I would love to play Forza5, I love the Forza Series and Part5 would be more than enough to sell me a 500€ Box. For me it would be worth 500 Bucks, but its not worth the Restrictions.

    #20 1 year ago
  21. Demigod

    Please MS shut up the engineers and even managers and hire a PR company that talks from their mouths not their arse. People arnt stupid, well most of them, your engineers and mangers are taking dumb and running with it.

    Over delivering value? Your not selling this to the board but to the public, one who knows you sell these things at a loss. They need a Don Draper may be that is why they tried to sell this an a set top box to start with.

    #21 1 year ago
  22. pukem0n

    just get rid of 24 hours online check ins and get a kinect-less box out there and Sony would be doomed.

    but i guess you wouldnt want that, right?

    #22 1 year ago
  23. UuBuU

    MS obviously value pointless gimmicks like voice recognition and kinect much higher than I do ~ all I see is slightly inferior hardware to the PS4 at a greater cost ~ and the PS4 itself is overpriced compared to a custom built gaming PC

    #23 1 year ago
  24. Belmont

    If the value is to be decided by the manufacturer, Apple can claim that iWhatever brings thousands of dollars in value. It is supposed to be decided by the consumer.

    #24 1 year ago
  25. Christopher Jack

    I bet they require XBL Gold even for the silly TV crap. One thing that always annoyed me about XBL is how it even put external services behind the Golden paywall, even those that required another subscription like Hulu+ & Netflix. Now it annoys me that Sony have done this with MP but at least they’re keeping multimedia away from PS+.

    #25 1 year ago
  26. Belmont

    @25

    That silly TV crap is their hope in “Dominating livingroom”, in bringing Apple to its knees !!

    #26 1 year ago
  27. manamana

    Keep them quotes coming, I say. One better than the other.

    #27 1 year ago
  28. FrankWhite

    Yeah Microsoft, you are OVER-delivering products and features I DO NOT WANT.

    You are OVERDELIVERING 24 hour DRM. You are OVERDELIVERING Kinect.

    You see, you think these things have value. I DO NOT.

    TAKE BACK SOME OF YOUR SHIT and maybe we can talk.

    #28 1 year ago
  29. NightCrawler1970

    @13, there was another war called BlueRay vs HD-DVD from Xbox 360(wich HD-DVD lost the market) for those who bought that crapper, wasted $199,-

    http://media.teamxbox.com/dailyposts/hd-dvd/hd-dvd_disc_30gb.jpg
    http://en.wikipedia.org/wiki/Xbox_360_HD_DVD_Player
    Xbox had to DEAL WITH the regular 8,5GB

    https://en.wikipedia.org/wiki/Blu-ray_Disc
    20GB more capacity than the lousy 30GB from HD-DVD.. for some Game-devs a space-saver…

    So even PS3 was expensive,(in that time) but had already advantage for games and watching movies…

    Now Xbox One have no change to come up with Blue-ray, because the games getting bigger and bigger, if they still stick around with a regular DVD, they will lost on the market…

    #29 1 year ago
  30. jcp234

    No way I’ll be purchasing Microsoft’s next box.

    #30 1 year ago
  31. Lewis247

    Don the dong strikes again. There is no fucking justification at this point in time based on everything they have said in terms of DRM. They need to shut the fuck up and get with reality rather than forcing their bleak ass controlled future on us.

    #31 1 year ago
  32. spartan1192

    If this pisses you off so much then simply don’t purchase the damn thing. If always needing internet is a problem then why are the people complaining using the internet to complain about using the internet for their console? Honestly it’s not the end of the world, I’m glad at least one of the new systems will do well, but that puts pressure on the other to do better down the road. It’s competition that drives better products for consumers.

    #32 1 year ago
  33. The_Red

    Dude, even IF you really are over-delivering value (IMHO, they’re not), you shouldn’t come out and say it like this.

    Remember the last person who was like this? It was Krazy Ken who managed to ruin PS3, the successor of a 150-million-unit-selling PS2.

    #33 1 year ago
  34. Cobra951

    @29: I wasn’t talking about HD video players. (Bluray clearly won that race.) I was talking about game consoles. DVD was (and still is) an acceptable delivery medium. Bluray is better now that it had dropped significantly in cost. But back when the PS3 launched, it was too scarce and too costly. It singlehandedly drove the price of the PS3 out of the sweet spot, and left it too high for years. Meanwhile, MS beat Sony to the market, in no small measure because they stuck with the established DVD tech. Sony “overdelivered value”, but it was the wrong thing to do. It’s the wrong thing to do now too, as Microsoft is about to find out.

    #34 1 year ago
  35. salarta

    Oh, okay, so Microsoft is taking huge losses to sell the console to consumers.

    … So where do they make their money?

    They’re not going to dominate the market like they did with operating systems, even in the magical off chance that they become the top dog of this generation like the prior one. So running out the competition then jacking up the price is out. So, who gets screwed out of money in this scheme? Is it the indie publishers, who have to pay $10,000 (as stated by the guy in charge of DayZ) and/or seek out a more popular publisher to do it for them? Is it the consumers themselves, having their data given over to the NSA for a price?

    Or are they just so absolutely virtuous that they plan to sell themselves into bankruptcy selling consoles worth “thousands of dollars” for $500?

    Mattrick is such a bullshitter.

    #35 1 year ago
  36. Kabby

    They’re over-delivering bullshit.

    #36 1 year ago
  37. ps3fanboy

    “We’re over-delivering value”, HAHAHAHA!.. this stand up comedy show looks to never end at the micro$haft camp. :D

    #37 1 year ago
  38. hitnrun

    Sounds like Sony defending the early PS3.

    Sounds like someone explaining to you what their house is “worth.”

    A thing – any thing – is only worth what someone else will pay for it.

    #38 1 year ago
  39. pandulce1

    “Meanwhile Phil Spencer has said that consumers will only see the true value of Xbox One once its sitting on retailers shelves and all the ins and outs of the console are laid bare.”

    How about laying bare all the ins and out of the console now? What will a box sitting on a shelf do to explain all the anti-consumer “values” you are over delivering?

    #39 1 year ago
  40. karma

    “Meanwhile Phil Spencer has said that consumers will only see the true value of Xbox One once its sitting on retailers shelves and all the ins and outs of the console are laid bare.

    What do you think?”

    I think its nothing but a glorified PC technically, and thats the actual thing i’m getting for my money. So no, its way overpriced in that regards. I think he’s talking about cloud and game ownership features though. In the way that they are saying “not owning your games is a positive step forward” for the industry and us, the consumers saying “fuck off, I like owning what I buy.”

    #40 1 year ago
  41. lookingglass

    I can build a PC with identical power and the identical features of the PS4.

    I cannot build a PC that offers the feature set of the Xbox One. The hardware and software allow it to do things completely unique to the Xbox One.

    That’s where the value is. PS4 is a glorified SNES with Internet. The XBO is so much more.

    #41 1 year ago
  42. Kanok

    I actually hate Don Mattrick, i need J Allard and Robie Bach back.!!!

    #42 1 year ago
  43. Mrnobodylikesus

    Fuck off the lot of you backward muppets !!!! I spose you all still have nokia 3210s?? or play cassettes on your walkmans ?? no you fucking dont !!! we live in a digital age and MS want to try and improve that in the same way apple did with the istore .. you think in 20 yrs time anyone is going to give a shit about the xbox one or ps4 ?? imagine if we hadnt moved on in the last 20 yrs ?? so instead of moving forward we should just keep you bunch of muppets happy .. keep playing ure megadrives and leave ppl that want to advance the world alone .. in fact I think there are armish communities you could move too .. as if having an internet connection is an issue ive had one for years .. not really a massive fortune in cost either .. £15 a month .. OUCH !!! WALLET DENTED !! Oh wait we are connected to the internet now .. coz we are reading a blog on the internet … Backward Fucks !!!!

    #43 1 year ago
  44. Gheritt White

    @44: Sure, with spelling, grammar and punctuation like yours, you’re doing a really convincing job of showing how it’s us who are backwards instead of you.

    #44 1 year ago
  45. Lengendaryboss

    @Gheritt
    Owned!

    #45 1 year ago
  46. Mrnobodylikesus

    You dont own shit !! ya daft hillbilly fuck !!

    #46 1 year ago
  47. Mrnobodylikesus

    Anyway point still remains digital gaming is here to stay and is the future like it or leave it !! ride a cart or drive a car ?? move forward ppl !!

    #47 1 year ago
  48. zinc

    @48, Well you’ve convinced me! MS have revolutionised the digital distribution model…

    …That is worse than the Steam model, but maybe not as bad as Origin…

    Silly Sony doesn’t even have digital downloads! Oh wait it does…

    So just how are MS developing the future again?

    #48 1 year ago
  49. Coheno

    ” It’s a lower number than some of the analysts had forecasted”

    Who are these dumb-ass analysts?

    #49 1 year ago
  50. Khan979

    @44 Rage Much?

    #50 1 year ago
  51. MadFlavour

    Fuck off Matrick, you jizz stain.

    #51 1 year ago
  52. ps3fanboy

    value??? i will tell you the value of xbone, it has the same value as a 10 year old trailer park toilet.

    HAHA!
    http://www.youtube.com/watch?v=MDtSf9pseOw

    #52 1 year ago
  53. fuchikoma

    No… “Thousands of dollars of value” is what they’re removing from consumers once the support phase for the XBone ends and all of their games stop working entirely, or at best, can never be installed on another unit.

    Really, $499 isn’t a ridiculous price point? Take Kinect 2 off it and I’ll take one for free. As-is, I won’t take one for free.

    …and I pretty much live Forza too. But I’m resigned to just having 3, 4, and Horizon from now on.

    #53 1 year ago
  54. AwesomeGus

    @53 Xbox one beats the ps4 in value for money… Instead of just a couple of hardware upgrades they are trying new, better stuff which will improve the gaming industry. If the two new consoles were shooters, the ps4 would be cod and the xbox one would be battlefield…

    #54 1 year ago
  55. Gigabomber

    Kinect voice commands are easily worth an extra 100 in the long run: if you’ve only owned a ps3, you won’t really appreciate it until you buy it.

    #55 1 year ago
  56. Joe_Gamer

    Take it from someone who’s used voice commands extensively, it’s not that great, I can hit a dozen buttons in the time it takes to say “Xbox suck ballz”

    The only “value” I care about is games, I see no value in the Xbone.

    #56 1 year ago
  57. fearmonkey

    @55 – No the Ps4 would be battlefield because it’s a much more powerful console, and the Xbox would be COD. MS can keep that new better stuff, as that new better stuff is really just Kinect 2.0, Ps4 has much better components other than the motion camera, and I can live with out that.

    @56 – I own a Xbox 360 and dont own a kinect, and could care less about voice commands.

    If MS would have sold the Xbox One for $399 and the kinect was optional, id be more interested (and they got rid of DRM, 24 hour check, etc.)

    #57 1 year ago
  58. ps3fanboy

    @55 stop sucking on microsofts dick, xbot… xbone lost!

    #58 1 year ago
  59. mistermogul

    “We’re over-delivering arrogance and bullshit” more like…

    #59 1 year ago
  60. CyberMarco

    Yeah baby, it’s rocket science. It’ll be the next water-cooler!

    https://securecdn.disqus.com/uploads/mediaembed/images/499/4201/original.jpg

    #60 1 year ago
  61. AwesomeGus

    @59 I think you could come up with a better argument than that if you didn’t have Sonys dick halfway down your throat. The iPad was hated by the internet but it was the fastest selling retail product. Now that Microsoft is telling us more and more about the xbox one we are finding out that xbox is much better and over the next few months you will notice that the xbox one will take a nice lead. Also it’s number one on amazon atm

    #61 1 year ago
  62. Joe_Gamer

    “Also it’s number one on amazon atm”
    sure about that?
    http://www.dailygame.net/features/ps4-pre-orders-at-amazon-gamestop-outselling-xbox-one-two-to-one
    The PS4 actually split their pre-orders into several different versions, so a closer, more informed look at the numbers reveals…
    http://www.amazon.com/best-sellers-video-games/zgbs/videogames/ref=pd_dp_ts_vg_1

    1. Xbox One
    2. PlayStation 3 game
    3. PlayStation 4
    4. PlayStation 4
    5. PlayStation 4
    6. PlayStation Plus card $20
    7. PlayStation 4
    8. Nintendo 3DS game
    9. PlayStation 4 controller
    10. PlayStation 4
    11. PlayStation Plus card $50

    Look at all that PlayStation shit…

    Might want to yank that big ole M$ cock out of your mouth before you go throwing dildos in glass houses, just sayin XD

    #62 1 year ago