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Microsoft needs to “win the value argument,” over $499 Xbox One

Wednesday, 26th June 2013 16:24 GMT By Stephany Nunneley

Activision Publishing boss Eric Hirshberg isn’t too worried over Xbox One’s $499 price point, but he does feel that the firm needs to prove why it’s worth the price.

Speaking with GI International, Hirshberg said it’s up to Microsoft to “win the value argument,” but for now, the “win goes” to Sony for it’s lower price.

“If you do a focus group of a gazillion people and you show them two prices for two competitive products, 100% always prefer the lower price,” he said. “I think from a first impression standpoint the win goes to Sony, at least as it relates to pricing. Microsoft is going to have to win the hearts and minds and convince people that the higher price point is worth it, and that it provides really meaningful capabilities that will be meaningful to consumers. And it’s a long game, so I am sure that’s what they intend on trying to do.

“I feel they have to show why that’s a good thing and why it’s worth the premium and deserves inclusion and why it’s something that gamers are going to come to really value and appreciate.

“It’s going to be a fun battle to watch, but I think they definitely have to win hearts and minds in terms of the value of it.”

Xbox One and PS4 are both due sometime in November.

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21 Comments

  1. Lengendaryboss

    The fact they have to win the value argument proves…..

    #1 2 years ago
  2. OlderGamer

    Well, they aren’t doing a good job so far.

    #2 2 years ago
  3. VibraniumSpork

    He’s totally right. Unfortunately Microsoft’s marketing team have proved that communicating clear, concise, easily understood messages is…not really their ‘thing’.

    #3 2 years ago
  4. MFBB

    Yeah they should prepare some things for Gamescon and give lots of interviews/even hold a little 30min presentation in some backstage area for journalists or so.

    Clear things up and tell us why/what/how.

    #4 2 years ago
  5. SlayerGT

    Most of 360′s success is contributed to A. A year early on the market and B. Being much cheaper than PS3. That gave them two to three good years of casual gamer investor/ community building (friends finding and playing with friends). It will definitely be interesting to see how things pan out.

    @OG of anything much less price. “Thousands of dollars in value”…If someone didn’t own ANY other device, maybe.

    #5 2 years ago
  6. Kanok

    Without Don Mattrick & Steve Ballmer = Microsoft win.

    #6 2 years ago
  7. ps3fanboy

    forced draconian drm failed, cloud bs failed… now its all about the value. but there is no value here, never was never will. microdots are outta the gaming business, they have lost. all the gaming companies that are on the microdots ships will lose enormous amount of money, or even worse go down with microdots gaming business.

    #7 2 years ago
  8. super3001

    5

    360s success was it was better than ps3 in every way

    #8 2 years ago
  9. sahand

    Activision have to convince me that COD worth 60$

    #9 2 years ago
  10. Beersup

    @7
    Lol, Cloud BS fail? Explain please. Keep on reading these XBone articles, you obviously have an obsession for it.

    #10 2 years ago
  11. TheBlackHole

    @9

    Not really, they’ve already convinced 15 million people. I don’t think they give a hoot whether you buy it or not.

    You are no longer the demographic.

    #11 2 years ago
  12. monkeygourmet

    @10

    So far, cloud has failed to provide any reason for its worth or a killer app.

    Same for Kinect 2.0.

    This wouldn’t be a problem if MS weren’t mentioning them as being revolutionary every 5 seconds…

    #12 2 years ago
  13. OlderGamer

    I agree SlayerGT, so much infact I am having a hard time buying either new system. I have PS4 preordered, but am thinking about canceling and sliding that investment over to games for systems I already own. 500usd – 700usd investment to get started on a new generation would buy a fair amount of gaming for the current gen.

    Really on the fence right now. I think Sony have the better system, better price, and richer line up of in house exclusives, but even with them I am undecided. Right now, MS have zero chance getting me to invest.

    Having a hard time seeing the value in either system right now.

    Kind of sums it up for me:

    http://www.gamesindustry.biz/articles/2013-06-20-end-of-the-golden-age-are-games-consoles-too-generic

    #13 2 years ago
  14. monkeygourmet

    @13

    New GPU!!! :)

    #14 2 years ago
  15. OlderGamer

    Damn it MG, don’t tease me! I want to upgrade my rig so bad lol. I am going to wait till I see some of these next gen PC games. See what the specs needed and benchmarks are before I invest(PC wise).

    #15 2 years ago
  16. Maabren

    Don’t see how MS can prove XO more value than PS4. But as always people will buy and most of them won’t even know the difference between XO and PS4.

    I belive PS4 have value both by price and games.
    Nintendo may get value by price and games during 2014.
    XO may get something down the road after 2015 but I’m not sure what it is…

    #16 2 years ago
  17. SlayerGT

    @13 OG I’d tell you like I told my buddy. He’s all about MS (I cant convince him otherwise :P ) he loves his 360 and Surface and Zune. He didn’t have a problem with MS’s original pitch for the XBOne. But after the hate and MS pulling a 180, he’s questioning getting one at all. I had to remind him its not required he get it day one. Wait till a game comes out that he wants to play on it. Cause he’s like me in that he likes shiny new things. With me its Sony’s game consoles. I know they will put out a game (Gran Turismo) that I want to play on it. But its like everyone that waits in line to get the new iPhone, this is the only thing I’m like that about..silly really, but I love it :D My buddy isn’t as “silly” as I am. He doesn’t need the XBOne day one and maybe neither do you. All but maybe 5 games aren’t gonna be on PC, as they’re not 3rd party games. I can tell you I’ll be busy with GTAV and GT6 when I pick up my PS4, but I don’t care. I want it :D

    #17 2 years ago
  18. OlderGamer

    I might be the first time I don’t buy a new system during launch, for sure.

    #18 2 years ago
  19. fearmonkey

    IF you have kids, I could see where you would think the Xbox One would have value, especially if your kids already loved the original Kinect.

    If you have no interest in the Kinect, which I would bet is at least 50%, then that extra $100 seems lame, as in my case.

    I think they are making a mistake forcing it on us $399 is the sweet spot, and I would rather do that and get the camera later if I want.

    #19 2 years ago
  20. SlayerGT

    @19 seriously. If they “believe” its the future..eat the cost. Sell for $399 WITH the camera.

    #20 2 years ago
  21. noamlol2

    microscam could just make a kinectless bundle for 450$/360 pounds

    bundled with a yearful of XBL gold and a cheap headset for basic communication

    #21 2 years ago

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