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Xbox Scorpio Pricing Discussion
- Thread starter BeforeU
- Start date
CrimsonEclipse
Member
Not sure if you can really compare it like that though, since MS is getting these chips at a much larger scale, the prices become considerably lower. It's not going to cost them that much to manufacture the console as those off the shelf PC parts you just thrown together.
Crayon
Member
GankzyMcfly
Member
LoL. I mean, it would be great if MS sold this thing at manufacturing price. It really would. Let's be realistic here.
GankzyMcfly
Member
Making comparisons like this is pointless IMO. Im sure MS gets all sorts of manufacturing deals based on the quantity they buy. For example,I could buy 1 chocolate for a dollar with 10 individual chocolate bars being 10 dollars, but if i buy a box of 10 chocolate bars i get them for 5 dollars because i bought in bulk, saving 5 dollars.
Would you be content if they sweetened the deal with subscriptions to their services? Like a month of EA Access, Game Pass and Xbox Live? Would that make 450 or even 500 more ok?
No more than $500 for me, but $500 would be a-ok in my book. Especially with trading my S in.
phantasmic_glaive
Member
...only to slow down Xbox one sales even further, by this announcement, and give PS a bigger gap until Scorpios release.
$350 PS4 pro bundle with RDR2 and voucher for Horizon. $250 PS4 bundle with RDR2 and voucher for Horizon. Star Wars, GT: Sport, Destiny 2 all bundle, worldwide.
It's gonna be a tough time for those guys no matter what the price is. You are talking to console gamers. Screaming out, jaguar, ram, DX12 is gonna sound like Cantonese to them.
The absolute best chance / bet for MS to gain ground this year is to stop the bleeding in the first 5 minutes of e3. Let em know what the recent update has done for the os and such and introduce a permanent price drop for Xbone; $250 with MC and 3months live and free month game pass.
Make announcement after announcement with short demos of exclusives with Scorpio and explain how it makes remasters out games you already own. My guess, TW3 upgrade, FO4: vr and end it with $400/$500 and a trade in deal for launch.
That way, it'll keep them competitive till Scorpio and the price drop is a great indicator that the price will indeed be $400 for Scorpio. The price difference between the 2 boxes are also equally important, imo, and should be kept down as much as possible. Even if it is $400, you wouldn't want to drop the Xbone price at $200, because of the difference. It'll make it seem more expensive than it really is, but it could work if done right.
My head would explode if that was true. Anyhow we are truly living through the golden age of videogaming for sure.
It hits all the right notes... performance, form factor, etc. Only thing left is for MS to announce some exclusive games.
Sony
Nintendo
If a PC equivalent made from off the shelve parts is 550, it gives me more hope that Scorpio will be 399. The PC equivalent's separate parts have their own separate costs (distribution, packaging etc.) and profit margins.
I actually think it's a smart way of marketing it. If they market it right, ie this is the state of the art console, I can see a lot of owners who never owned a Xbox1 purchase one. Ultimately I believe they will set the price at $499 because it just seems reasonable. As much as I would like to see $399 and up the competition I find that rather unlikely. But even at $499 first timers will eat it up. Previous owners... I am not so sure at $499.
lol DDR3. sure buddy. also where is the UHD drive? oh wait... and the controller? this is half-assed - unlike scorpio. lol
Jessie.Bristol
Member
Console manufacturers pay substantially less then consumers do for their parts. You're paying retail prices whereas Microsoft, Sony, and Nintendo do not.
Freeman76
Member
They are really trying to get back in the game, but the people who settle on pricing arent the same wizards behind the tech.
The tech people at MS are pushing the envelope in order to get back in the game, not sure the financial bods are as 'in touch' though. I would not be shocked if this is a premium console at a premium price.
Dee Dah Dave
Member
I would guess it costs somewhere around $50 more than the PSPro to manufacture. It's a UHD drive (already in the XB1S), 4 CU's more silicon, and 4GB RAM. Plus higher build quality all round (already in both the XB1). Oh and a 'fancy' cooling system which sounds better than it is.
Those add up but aren't anything mega. Sony are no doubt in profit at $399 so yeah, $399 with maybe a small loss at launch. Then make some back with some $499 bundles (see XB1S launch SKU's).
Higher than $399 defeats the purpose of the system ie to "really move Xbox forward". (see Xbox reveal video!)
Those add up but aren't anything mega. Sony are no doubt in profit at $399 so yeah, $399 with maybe a small loss at launch. Then make some back with some $499 bundles (see XB1S launch SKU's).
Higher than $399 defeats the purpose of the system ie to "really move Xbox forward". (see Xbox reveal video!)
Com Truise
Member
Not sure there is any reason for Microsoft to go for a "lower" price point. Let's be honest, the Xbox One is not exactly the hottest commodity in the console space. A new Xbox One releasing at the end of 2017 costing 400 bucks is not going to set sales charts on fire. So if you're aiming for the enthusiast market, might as well get the most out of every unit sold.
I am sure Phil would make the right call if the price is outrageous. I shudder to think that I once bought a launch PS3. Never paying that much again.
I think MS is betting on the third party games. In that case Scorpion would be the go to console for premium experience. I think that would move the Xbox forward.
Basically this. But I don't expect them to be eating an actual loss if they launch it at 399$.
Microsoft isn't in this to earn back a trickle of profit by selling a niche 500$ box to people. They are trying to blow themselves out of the slump they've found themselves in with the XB1. They got to make a splash, and a 499$ console that uses mostly the same parts as the 399$ box the competition launched last year is certainly not going to cut it.
Amount of consoles they can move at $399 vs $499 would be substantial. At the same time I can't see them taking a hit on each unit sold.
Dee Dah Dave
Member
Absolutely they are. But they wont pull people in if they have to pay an extra $100-150 for the privilege.
The Scorpio isn't going to dramatically turn the tides at any price. But it does have the potential to pull several million people away from PlayStation, mainly the ones who were on 360 before the mass exodus. Or anyone who somehow hasn't bought a console yet. Plus of course all the Xbox fans.
Bingo. Scorpion is an awesome purchase for people who has been on the fence.
AlfonzoPalutena
Member
I don't think Microsoft is eager to become a loss leader, just to get a leg up over the PlayStation 4, they're hoping that winning the spec race (and hopefully a good lineup of exclusives) will push them ahead instead.
Neither company (nor Nintendo) repeated Sony's PS3 mistake that ate up years of potential profit. Sony didn't even lower the price of the PlayStation VR headset to give it more momentum out of the gate.
I think Microsoft will price the console with a slim profit margin, like they did with the One and One S. $500 is the absolute ceiling though, and even that might be too high.
Any higher than that and the system is too niche to compete with the PS4 Pro, and Sony wins the spec race by default because Scorpio isn't effectively in the conversation at all with such a high price
Neither company (nor Nintendo) repeated Sony's PS3 mistake that ate up years of potential profit. Sony didn't even lower the price of the PlayStation VR headset to give it more momentum out of the gate.
I think Microsoft will price the console with a slim profit margin, like they did with the One and One S. $500 is the absolute ceiling though, and even that might be too high.
Any higher than that and the system is too niche to compete with the PS4 Pro, and Sony wins the spec race by default because Scorpio isn't effectively in the conversation at all with such a high price
I think $499 has to be ceiling for price unless MS seriouslay believe there's a large chunk of addressable market looking for a premium console vs high end PC.
More than $499 means they're not targeting existing mass market console audience.
Like you say whether they drop much below that while depend on their margin goals, true cost per console and how much they seriously think they can lure third party AAA crowd this late in the game (after all across PS4/Xbox versions already out there must be well over 75 million already and I doubt majority are looking to upgrade).
The price - more than the specs - is the real point of interest for me as that will clearly signal MS true gals and target audience plus reveal how it will sling with Slim.
Don't forget that if the console is $399 retail that has to include retailer cut. MS will be selling the console to the retailer for less thus for them to make a profit the cost of the console has to be even less than the cost price to the retailer.
Yeah, I was talking more about the decision makers, not the people who actually developed the console.
Quote from Kotaku article which collects industry quotes together:
QUOTE | I estimate the basic hardware will cost around $650, so if Microsoft wants any kind of margin at all, Scorpio will have to retail for $700 or more. - IDC analyst Lewis Ward is bracing for a bit of sticker shock on Project Scorpio.
Make me give away 10 NES games and 10 GBA games if old.
QUOTE | I estimate the basic hardware will cost around $650, so if Microsoft wants any kind of margin at all, Scorpio will have to retail for $700 or more. - IDC analyst Lewis Ward is bracing for a bit of sticker shock on Project Scorpio.
Make me give away 10 NES games and 10 GBA games if old.
Dude's living in an alternate reality. Please point out the parts of the device that warrant such a price. Ridiculous.
Dee Dah Dave
Member
$650+ lol.
MS have made this to be the multiplat king again. It's pointless winning all the Digital Foundry face offs if nobody buys it.
MS have made this to be the multiplat king again. It's pointless winning all the Digital Foundry face offs if nobody buys it.
I used to think that people thinking this thing would be $399 were crazy optimistic, but now we know what the hardware actually is I can't see how they can get away with charging more.
It absolutely should be $399 and the messaging and hype on here during E3 will be "OMG! A premium Xbox experience for only $399!", completely ignoring the fact that that's all the specs justify and it won't be anything to shout about for either good or bad.
It absolutely should be $399 and the messaging and hype on here during E3 will be "OMG! A premium Xbox experience for only $399!", completely ignoring the fact that that's all the specs justify and it won't be anything to shout about for either good or bad.
The specs do not indicate a $399 price point makes sense. I've seen people claim this but not explain how or why.
Sad Affleck
Member
Thinking about the question of pricing some more, I believe it will depend on what Microsoft's actual goal with the Scorpio is. Why does this machine exist? If its purpose is to reclaim the performance crown and bring back core gamers to the Xbox ecosystem before the next generation starts, then it has to be $399. If it's supposed to turn a tidy profit by getting existing Xbox users to upgrade to a more expensive machine then it might be $449 or even $499. My prediction is still $399.
CrimsonEclipse
Member
I'm being very realistic, I didn't say they were gonna sell it at manufacturing cost. I was simply implying that you cannot compare what MS pays for parts to normal consumers buying off the shelf parts.
wapplew
Member
Common practice in tech world, same price give you 20-25% more power every 6 months.