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Xbox One DRM focus will switch to price difference between PS4 – analyst

Thursday, 20 June 2013 16:48 GMT By Stephany Nunneley

Wedbush Morgan analyst Michael Pachter has said in an investor note that Xbox One has a better chance at competing with PS4 this holiday season now that Microsoft has changed its DRM policies. The analyst also doesn’t rule out a possible price cut should Sony’s console lead the retail charge with it’s lower price point.

Pachter believes that once the focus on Microsoft’s online policy changes diminishes, the new focus will be on the $100 difference in pricing.

“The differential is due to the inclusion of Kinect with every Xbox One; Microsoft intends to offer a more robust hardware bundle than Sony will offer, and Microsoft is convinced that consumers will ultimately appreciate the value proposition presented by Kinect,” he wrote in his note via GI International.

“Microsoft has not done a particularly good job of communicating the value proposition to consumers, but today’s [policy] announcement will remove an impediment to the company’s ability to get its message across.

“We are confident that with six months of focused messaging, Microsoft can fully level the playing field with Sony, and we expect the Xbox One to sell as many units as the PS4. If we are wrong, we think that Microsoft is prepared to lower price next year.”

Both consoles will be released in time for the holiday shopping season, where both will go head-to-head in a bid for consumer attention.

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55 Comments

  1. MCTJim

    Of course it will..playing field is level now except on price point. I don’t mind paying the extra here because it will benefit me. Other countries should have the option of no kinect in the box, hence lowering the price in line with PS4.

    #1 2 years ago
  2. Joe Musashi

    Why would you cut the price when you’re over-delivering on value?

    JM

    #2 2 years ago
  3. karma

    Who in the right mind would still go with MS after all this?

    I just don’t see it ending well for those that jump in bed with them again. I know I wont take the risk after all the undelivered promises of the 360.

    Don’t think i’ll be going to Sony either tbh, though I admit they’re the lesser of two evils. But after the pay to play MP reveal I decided to go PC next gen, so they can both duke it out for the next ten years for all I care.

    #3 2 years ago
  4. MCTJim

    @2 I think its a great value for what they are offering to us in the USA. I dont have an issue with price point…, but from what I read its still in its infancy across the pond so give those who cant use the service the discount or a unit without the Kinect.

    #4 2 years ago
  5. Lengendaryboss

    “Who in the right mind would still go with MS after all this?” Gamers who hated the 24 hour check in system :) or gamers who thought MS Xbone was an anti-consumer product. :D

    #5 2 years ago
  6. manamana

    Of course they will make Kinect optional, so they can have a 389€ and a premium-kinect-superTV-bundle for 499€. Just as expected.

    #6 2 years ago
  7. Battler624

    its funny how microsoft said that the xbox is based around the DRM they cant simply change it > days later they simply change it.

    #7 2 years ago
  8. fearmonkey

    I applaud MS for doing this, and I am completely shocked they caved in so early. It shows that they actually might have some brains after all.

    As Karma said above though, It doesn’t make me run to MS with open arms though. I still have a bad taste after all this and I’m still getting a PS4 this fall. I will take a wait and see regarding the Xbox and may pickone up next year (unless I suddenly become rich)

    I still don’t like the Kinect being required and forced on me. I don’t game in a living room on a TV, I game in a den on a projector sometimes and mostly on a 27inch monitor. I dont have 4.7ft of space currently for the kinect.

    I’ll get the Xbone for the exclusives like Fable and Halo, but it wont be my primary game box this year. The PS4 is much more capable and will run third party games the best, and thats what I play most.

    @7 – I know. Its funny that major nelson got snotty with Angry Joe about just that issue on joe’s interview (are you a programmer joe?) and a few days later, no 24 hour check in hahahah.

    #8 2 years ago
  9. MCTJim

    @7 hence in the announcement that you have to connect to the Internet on day one and download the update.

    #9 2 years ago
  10. Junior

    Well given that the games coming out on xbox that everyone says makes the system better use cloud. Therefore, it is still a mostly online system.

    Let’s not forget the specs.

    Sony may not have shown many games but you better be sure that they are working on their big franchises.

    Lastly, sony and microsoft are even in the usa where the x1 can fully function. Can you imagine how well it will take off on countries where the tv function is useless and intetnet connection is horrible?

    #10 2 years ago
  11. ps3fanboy

    MAKE ONLINE GAMING FREE NO FORCED PS+, NO XBOXGOLDLIVE. LETS MAKE IT HAPPEN! WHO GIVES A SHIT ABOUT ONE 100 DOLLAR MORE OR LESS, THAT YOU PAY ONCE. GIVE US FREE ONLINE GAMING WE HAVE ALREADY PAYED 60 DOLLARS, AND WANT THE FULL GAME EXPERIENCE.

    #11 2 years ago
  12. Lengendaryboss

    @PS3fanboy
    I have no clue which side you’re on, so i suggest a name change :)

    #12 2 years ago
  13. ps3fanboy

    its a call for help, gaming as we know it are being taken away from us… yes i speak for xbone and ps4 here.. we have payed 60 dollars so online gaming should be free. if not we dont get the whole game experience we payed for. its a fact all gamers should put down the foot noaw and show this is no acceptable!

    #13 2 years ago
  14. CyberMarco

    kids these days, afraid of losing their favorite toy…

    go protest for your civil rights instead, moron!

    #14 2 years ago
  15. bennyx

    Well said ps3fanboy well said.

    #15 2 years ago
  16. Lengendaryboss

    @13/15
    Too bad its a lost cause.

    #16 2 years ago
  17. DSB

    What value?

    #17 2 years ago
  18. The_Red

    Seriously? “value proposition presented by Kinect”. The value of having a camera spy on us 24/7!?

    #18 2 years ago
  19. MCTJim

    @18 its been debunked already. You have to opt into or allow it..ie give permission.

    #19 2 years ago
  20. CyberMarco

    @19

    Sure, you have to opt-in…

    *cough* PRISM *cough*

    #20 2 years ago
  21. Bomba Luigi

    The Problem with the Kinect just is that I can’t see any Value. We had the First Kinect out now for some Time, and yes the new will be better and all, but the Fact that the First One didn’t show any new Value for Gaming at all in all those Years is still standing in the Room.

    It even made Games more bad and Broken for the Most Part, and the best Thing Kinect actual did was Voice Command stuff. Stuff you don’t need, and you sure don’t need a Kinect for when a Cheap Headset could to the Same.

    Maybe the New Kinect is all better and will do it better and whatever, but that is something they have to proof first. Right now all I have to Judge is the History of Kinect, and that dosn’t look good.

    #21 2 years ago
  22. PEYJ

    I still cant believe there are dedicated PlayStation owners out there that won’t embrace PSPlus.

    #22 2 years ago
  23. MCTJim

    @20 cough..your ISP..cough facebook…cough google…..cough your cell phone…so your point being? MS’s policy can be read on their site, its in plain view and the wording is clear..you have to allow or opt in.

    #23 2 years ago
  24. OwningXylophone

    @21

    History shows that optional hardware lacks 3rd party support. By bundling a Kinect in every box dev’s can be 100% certain that every XB1 out there can play their games, and so in theory, we should see more games support it and maybe some more innovative uses for it. How many Kinect games, not ‘Plays better with’ but the ones in the purple cases, were released for the 360 by 3rd party studios?

    #24 2 years ago
  25. Bomba Luigi

    @24: I get that Theory, but the Problem Remains that Kinect Games I saw were not good. People made Games for Kinect, and most of these Games turend out bad. Now they are doing Games for the new Kinect, why should it now be better?

    Yes, maybe it is better, maybe it will be Great and all. But as I said, that is something they have to proof. Until this Day they never showed me any Value of Kinect – but a lot of Promises. Just more Promises like “But it will all be better because now its Part of every Xbox Console” wont help. They have to deliver.

    #25 2 years ago
  26. CyberMarco

    @23

    FYI I’m not from ‘Merica, and I don’t have a smartphone, don’t use google and use a f*ckton of add-ons to protect my privacy, as much as possible. At least I try not to support acts like that, not unless I’m forced to.

    If you read carefully at the fine print, it states “We reserve the right to change any policy without any further notification” or something along those lines…

    #26 2 years ago
  27. OlderGamer

    I am with you folks. DRM was only part of my issue with Xbone. I don’t like Kinect at all. And no doubt it is woven into the fabric of the Xbone experience. I haven’t honestly enjoyed the flow of MS first party games in recent years. I would rather play Destiny/BF4/CoD/or Titanfall then anything exclusive to MS. MS has given indies the shaft. And while I think TV is neat(I have Direct TV), I think there is too much focus on it for my tastes.

    And also, for consoles in general I don’t like the fact that game libraries only live for so long. When MS/Nintendo/Sony want to pull support for their consoles, you pretty much lose. If Hardware breaks, needs replacing, and servers are down…you aren’t getting that content that you paid for. I have that problem with some mechs I bought for Mechassult on XB orig. We lan the game in house and are minus a few mechs on some systems.

    Steam might be digital, but I can get to content that I have paid to use. Even if I upgrade/replace my rig.

    Consoles just can’t do that. And it is a shame.

    I just recently started redoing my den/office and got a big screen old style sd tv. I have been hooking up everything from NES to Neo Geo to Gamecube, what an amazing experience. So refreshing, and so very much MINE. I own them. No one can tell me when I can and can’t play something.

    I know the future is coming, hell I said it would be like this years ago. But I don’t have to like it. And I don’t.

    Xbone is better because of the removel of DRM. No doubt. It also has some decent games. But I am not sold just yet. I am sticking with my PS4 preorder for now. And ofc my room full of retro goodness.

    #27 2 years ago
  28. MCTJim

    @26 really? this site said the same thing when you registered..you worried now?

    but in all seriousness…they are not going to spy on you in your living room or anywhere else…..I would be more worried of all the cameras at every traffic light and on every street corner before I would worry about my xbox watching me play or listening to me in my living room.

    #28 2 years ago
  29. OlderGamer

    Go read 1984. If they aren’t going to use it(Kinect data collection)…why did they build it in there?

    Just One simple question. Answer it if you can. I will wait.

    #29 2 years ago
  30. CyberMarco

    @28

    That’s why I use fake credentials on the Internet… duh!

    #30 2 years ago
  31. MCTJim

    @30 would love to discuss your stealthy internet hiding..but if they want you they will get you.

    I read 1984 my senior year in high school..ie in 1984. As for the Kinect..maybe to get peoples fat asses off the couch or add something cool like leaning around a corner when playing forza. Maybe to immerse you into a game..the list goes on..sorry . but they invented it for entertainment…just like TV, its for entertainment.

    #31 2 years ago
  32. OlderGamer

    Pretty week answer. I doubt MS is concerned about our health. And tbh, the couch seems to be just the place that a company that sells living room entertainment would want us to be. Plus it doesn’t need to collect or record anything in order to get people off of the couch.

    Try again, if you like.

    #32 2 years ago
  33. MCTJim

    @32 weak answer? its for entertainment..all in ONE entertainment system.

    you dont like connect fine, do NOT buy the x1 its that simple, but you better not drive your new car anywhere as they are tracking you too by watching your driving habits and increasing your insurance based on that california stop you made at the stop sign.

    Please people if you are so concerned disable it like they say you can.

    #33 2 years ago
  34. CyberMarco

    @31

    “but if they want you they will get you.”

    I know that, but at least I’m not letting them bust into my private life with my consensus.

    #34 2 years ago
  35. MCTJim

    @34..me either :D

    Kinect is not gonna let them into my private life and give them invaluable information to save me from myself..or who knows the rest of the world…really its not…

    then the computer you are using is sending information back to the NSA or whatever else so your busted.

    Wish i could continue, but I have to get back to my job at the NSA.. so I can shut down all sites that say the Kinect is a spy cam..LOL

    #35 2 years ago
  36. CyberMarco

    Shit, my cover is busted… :P

    #36 2 years ago
  37. TheBlackHole

    @32

    Why should I be afraid or concerned with Microsoft wanting to collect data from me?

    Google spies on me online, via emails, and through the videos I watch. Outcome? I get served more relevant ads and content.

    I’d rather have dynamically targeted ads that are relevant to me than a bunch of random, irrelevant ads I have no interest in.

    #37 2 years ago
  38. MCTJim

    later gents, its been fun…end transmission….LOL :P :lol:

    #38 2 years ago
  39. CyberMarco

    @37

    http://donttrack.us/

    #39 2 years ago
  40. DSB

    www. tinfoilhat.com

    #40 2 years ago
  41. YoungZer0

    Nothing tinfoil hatty about that. I thought the recent NSA scandal made that pretty clear.

    #41 2 years ago
  42. DSB

    You think they’re interested in your porn collection or whether you pick your nose?

    They’re really not.

    Potentially the worst they’ve done with the Echelon project is uncover bribery by the EU in connection with Airbus deals.

    And even then that’s kinda hard to prove for obvious reasons.

    Peoples perception of intelligence services is hugely exagerated. They have limited budgets, and they barely have time to surveil the actual terrorists. They’re not interested in what’s on your computer or what you do in your home.

    They have a pretty specific task to accomplish, and the vast majority of the worlds population isn’t included in that.

    #42 2 years ago
  43. manamana

    #42 +1 and yet, the 1984 book skyrocket in sales since PRISMgate … It was on #66 in Amazon bookcharts USA and #42 in UK. Tinfoilhats for everyone! :-D

    #43 2 years ago
  44. DSB

    @43 I’m not saying it isn’t morally reprehensible, especially for one of the key liberal nations in the world. Just that the actual threat to the individual is incredibly small.

    You just have to do the math. The US has what? 350 million people tops? Even if every single citizen of the US spent their day looking through every foreign citizens internet PC and mobile content, they still wouldn’t be able to keep up.

    And I’d be very surprised if more than 10 million were actually working with intelligence to any extent, so it really starts to get very silly.

    http://www.theatlanticwire.com/national/2013/06/contract-security-clearance-charts/66059/

    According to that piece, it could never be more than 5 million. Those people are BUSY.

    #44 2 years ago
  45. manamana

    Hey, I don’t disagree and I’m absolutely convinced that I am absolutely uninteresting for the NSA. Just wanted to mention the *overall* reaction to PRISM that showed up also on the book sales of Orwells vision.

    #45 2 years ago
  46. DSB

    Well, at least it gets people reading :P The NSA bookclub!

    #46 2 years ago
  47. manamana

    Ah, now I realise how they fund their costy projects! ;-)

    #47 2 years ago
  48. Maguire82

    Totally gutted about the DRM U turn. All my games in one place plus I had 10 palls all ready to be in my family group! We were all going to get different titles on launch day and share in the feast of the new games. This U turn has cost every single future Xbox one owner more money. 1 game = £50 ÷ 10 “family members” = £5 each. And a that price I would gladly never wanna sell a game again.

    #48 2 years ago
  49. super3001

    48

    complaining assholes dont want progress. digital sharing was useful feature but now we cant have it.

    #49 2 years ago
  50. vgyliu

    Still with all the changes i dont like that the kinect have to be connected in order to work and that there are people with small rooms plus there wasn’t a single kinect game i wanted. The other part im not buying it is because the RROD experience that ive had. 2 xbox 360 died each lasting only about a year to a year and a half compared to my ps3 where it is still working after 7 years.

    #50 2 years ago
  51. NeutralBlade

    @48 MS wasn’t going to allow such an obvious loophole to be exploited. The fine print would prevent free games abuse, and they would patch any exploits they find. It doesn’t make sense to limit game sharing to one transaction, when digitally, it would have supposedly been free games galore.

    That sharing feature, (as some believed), would have been worse than the used games situation. Still, I’d take my gaming rights over this “benefit” any day.

    #51 2 years ago
  52. CyberMarco

    @48

    If this rumor was to be true, I don’t think it would work like you think.

    http://pastebin.com/TE1MWES2

    “When your family member accesses any of your games, they’re placed into a special demo mode. This demo mode in most cases would be the full game with a 15-45 minute timer and in some cases an hour.”

    Well, we can’t know that now…

    #52 2 years ago
  53. nostramo

    Consumers will jump up and down, holler and whoop, once microsoft redress their oversight of not communicating the value of kinnect, meanwhile the core will be faced with a choice, buy into the whole motion control thing or fuck off somewhere else. Microsoft have insisted that every third party developer MUST incorperate kinnect functionallity into every game in the works.
    Like it or lump it friends, the choice is yours.

    #53 2 years ago
  54. Maabren

    Kinect + NSA, deal with it or fuck off!

    #54 2 years ago
  55. lunayasha

    I find it disturbing that people want to buy a piece of hardware that has motion censors, facial recognition software, was previous supposed to be “listening” to voice commands, and had to be on the internet daily. I know Xbox has changed its policies, but they are subject to change.

    I would want to purchase something that can conceivably record me playing a game, and then possible load it up to the internet for the government to do as it pleases with the footage. So Tim who is Ohio just playing some kinnect game possibly could end up being in footage of a terrorist attack in New York in minutes. So then gamers would be seen as threats to America. I know it sounds far fetched but remember that anonymous started out 4chan, and that Snowden liked to play video games and had anime avatar. Too me this sounds like a spying device used to track unsuspecting gamers.

    #55 2 years ago

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