Microsoft drew some criticism from gamers and analysts when they revealed that the Xbox One will be launching in November for $499, one hundred dollars more than their chief rival, Sony's PlayStation 4.
Though Microsoft representatives have defended the high price of the console, many gamers feel that the Xbox One has yet to justify the high price of the console. But now Rafi Mohammed, author of The Art of Pricing, spoke to Bloomberg TV about the console, saying that the price of the console could be the downfall of the system:
"You want to get that console in consumers' hands, and then where you really make the money is off of the games...So it was really surprising that they charged such a premium, especially when they had a lot of negatives...like the very restrictive DRM, which they did retract from. One of the key things is that they really listened to their consumers and they did backtrack...but I still think the price is too high...So it's still a $100 premium."
Mohammed stated that, while shipping the new Kinect with the Xbox One is an advantage for the system, Microsoft may be better off having the accessory be an optional part of the console, instead of integrating it into the Xbox One so completely. If a user attempts to use the Xbox One with the Kinect unplugged, the Xbox One will not function. In addition, The Xbox One will be incorporated into many of the apps and games for the system, including voice commands and Skype video chats during gaming sessions.
Despite the high price of the console, the Xbox One is still managing to help break preorder records on Amazon.com, along with the PlayStation 4, even claiming the number one pre-order spot, though most likely due to having only one SKU available as opposed to the several PS4 SKU's available for pre-order.