Microsoft may try to implement smartphone style contract on the Xbox 720

[sooner78wakeboard]

Smartphone-style contracts will be the Xbox 720's bread and butter | Digital Trends

By subsidizing sales with subscriptions, just like smartphones. Rather than charge $400 or $500 for a new game console upfront, Microsoft plans to sell the Xbox 720 at a low price with an accompanying subscription.

In a discussion with the Wall Street Journal, Microsoft interactive general manager for marketing Matt Barlow said that subscription programs will be the core of future Xbox releases. “This type of program is pivotal to our business,” said Barlow.

Microsoft began testing the subscription market back in May when it released a $99 Xbox 360 that through its chain of Microsoft Stores. The console is cheap, but it comes with a mandatory two-year contract requiring monthly payments of $14.99. That includes Xbox Live Gold, but at $180 per year, the device and service end up costing significantly more than if they were purchased individually at flat rates. Following that test, Microsoft began offering the same package at Best Buy, Toys ‘R’ Us, and GameStop.

 

[bamabear82]

It's going to be interesting to see where gaming goes from here. They really want these used game stores gone.

 

[Brasky]

It's going to be interesting to see where gaming goes from here. They really want these used game stores gone.

The one thing that will suck is you wont be able to do things like borrow games and use them on your console. You will have to purchase every game you play on that console.

Used games will essentially be worthless.

 

[huskers1217]

I'm assuming that in five years all games will be downloaded to the box.

 

[Brasky]

I'm assuming that in five years all games will be downloaded to the box.

It's coming a lot sooner than that sir. Much much sooner.

 

[Taz_Hokie]

I currently own a Wii, PS3 and a (defective/paperweight) 360. If the gaming industry goes this route, I think it will prevent people from buying multiple systems as having multiple subscriptions would be a pain to the wallet, especially if your tied down for 2 years.

 

[Brasky]

PS3 has always been willing to play to peoples pockets. Why else would they have free online play?

 

[7NationalChampionships]

If this happens, it will be the death of the Xbox.

 

[herky]

If this happens, it will be the death of the Xbox.

Maybe not if they can provide top notch online gaming and support. I could see a huge rift in the gaming market coming up.

XBOX -----> Focuses on the online/PvP market
PS -------> Continues as is
WiiU ------> Who fucking knows

 

[7NationalChampionships]

Yeah but this is microsoft we are talking about...

 

[Taz_Hokie]

Maybe not if they can provide top notch online support.

Yeah but this is microsoft we are talking about...

Yeah, those two are kind of mutually exclusive.