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Xbox Series X/S — Next Gen Consoles Coming November 2020

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56 minutes ago, iainl said:

Do we still think the Series S is hitting the same date? That there are already white controllers would suggest as much, but I find it hard to believe Spencer's happily discussing retail boxed examples of the X without so much as a vague leak of what a Series S case looks like. 

 

I can't imagine it coming later. The packaged white controllers dated for November mention the Series S on the box as we know, so it would be odd to let that out into the market referencing a product Microsoft would continue to refrain from discussing. That it hasn't been revealed yet I think can simply be put down to the disruption of 2020 messing up everyone's plans.

 

Allegedly it looks more like an X (an XB1 X that is).

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I’ll reiterate that $599 is not a mass market price. Sony learned this the hard way with the PS3 and that was despite the reality that the PS3 was, in fact a pretty fantastic value considering all that it offered at the time. In other words value had little effect on easing cost concerns from a consumer perspective. Could that have changed over the years? Certainly? Maybe? Afterall, we did see a mid-gen refresh with higher pricing and more value in the One X but even in this thread we’ve discussed how that machine was not profitable for Microsoft and that was at $499. 
 

Perhaps Sony/Microsoft aren’t as concerned with mass market pricing initially considering the environment these machines are releasing in but “boutique” pricing for an equivalent device that in Sony’s case makes up some 30% of their overall sales and 48% of their overall profit in 2020 seems like a very stupid gamble. I don’t buy into the pessimism. I still say $499 is the ceiling.

 

In so far as cell phone pricing is concerned - it’s a very different product from a valuation perspective. First and foremost, they are considered an “essential” item in our society so the willingness to pay more is there. People aren’t living without a cellphone in 2020. It’s not happening. Folks can live without an Xbox or a Playstation. 
 

Cell phones also offer a market with a variety of ways to spread the cost out over the life of a contract. My eldest daughter has an $900 dollar phone that I’m paying $40 dollars a month on as part of my Edge plan with Verizon. I can’t remember a time when I outright paid the full cost for a cell phone. It was usually heavily subsidized via my plan or paid in installments, etc.

 

 

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I wouldn’t say the X sold well outside of the hardcore at $499 either though. It was discounted to $399 pretty regularly just months after launch from what I remember. Granted, that was 3 years ago now, but I don’t see where the market has changed significantly to think it will be much different this time. I don’t feel there would be a Series S if MS didn’t think the same way. 

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3 hours ago, Paul said:

I wouldn’t say the X sold well outside of the hardcore at $499 either though. It was discounted to $399 pretty regularly just months after launch from what I remember. Granted, that was 3 years ago now, but I don’t see where the market has changed significantly to think it will be much different this time. I don’t feel there would be a Series S if MS didn’t think the same way. 


Sure hence the lack of profitability. Though I might argue that the One X was an incremental refresh (something of a soft-reboot for Microsoft, frankly) and not a generational shift in hardware. It was only ever going to appeal to the “hardcore” in much the same way that the PS4 Pro was never going to supplant the Slim PS4 selling for $100 cheaper. Though the Pro had a better chance at $399. 

 

I think given the new technology present in these consoles, it makes it a more compelling sell. Including a massive leap in CPU power, much more powerful GPU’s at the time of release when compared to the PS4/Xbox One GPU’s which were a generation or two behind and integrated SSD solutions that are designed to take advantage of the I/O speeds of the new architecture. $499 is a relatively fair price for “cutting edge” if you will and right on the edge of mass market. It’s up Microsoft and Sony to present the games to make that purchase worthwhile, obviously.

 

Like I said, $499 is the ceiling to me. I’m not discounting one or either coming in lower. My point was that I don’t buy the pessimism thinking $600-$700 price points are on the table. It reminds a lot of the Vita pre-release. There was /NO WAY/ Sony could release that much tech for less than $350-399. Zero chance. The thing released for $249-$299.

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Phil Spencer appeared on the virtual talk show Animal Talking, where he discusses the delay of Halo: Infinite. He also more or less confirms that Game Pass is the killer app for Series X now.

 

 

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