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Microsoft: Subscription model 'pivotal' to Xbox business

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Executive suggests contract model will be used for future hardware launches

Matt Barlow, Microsoft's general manager for interactive entertainment marketing, has said the mobile phone-style subscription model is "pivotal" to the company's business.... read more

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Microsoft: Subscription model 'pivotal' to Xbox business

Postby adgr19 » 23 Oct 2012, 12:18

freedom of choice is 'pivitol' to my money also. microsoft boooooo
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Microsoft: Subscription model 'pivotal' to Xbox business

Postby Barca Azul » 23 Oct 2012, 12:19

Its like full circle for me. Going back to the days of Radio Rentals (Boxclever)

460 dollars for a console and 2 years gold mind.
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Re: Microsoft: Subscription model 'pivotal' to Xbox business

Postby illage2 » 23 Oct 2012, 12:23

Well looks like I'm not getting the new Xbox then unless the contract is optional. The contract model might be good for Microsoft but not for the customer, it might seem like a good idea but you end up paying more money than the console is worth after the two years.
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Re: Microsoft: Subscription model 'pivotal' to Xbox business

Postby shiftymorgan » 23 Oct 2012, 12:39

if they did go down the contract route could you argue that if you console dies in the life of the contract MS would have to replace it?
Due to it not living the life of its supposed contract?
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Re: Microsoft: Subscription model 'pivotal' to Xbox business

Postby wishface » 23 Oct 2012, 12:45

I think I'm done with M$. This is a multi billion dollar profit making company and they continue to fleece their customer base. I'm not interested in their crappy dashboard which is just a front for all sorts of shoddy operators, like Sky or Lovefilm, and is just an advertising machine, which I don' twant on my console.

This is an age of austerity. People don't have much money and to be constantly double dipped by these sharks is frankly taking the p**s. The price of games is still exorbitant and rarely do you get your money's worth, and you need to pay extra in order to play that game's online component. Not good enough.
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Re: Microsoft: Subscription model 'pivotal' to Xbox business

Postby Two Pennys Worth » 23 Oct 2012, 13:04

Great news. Hopefully MS will put out a powerful console now people don't have to worry about finding 4-500 quid up front for their console. I'll be paying up front for mine but in these hard times some people will find it a struggle to find that kind of money up front. For the people flapping about a subscription only model, Get A Grip. Are you serious in thinking you won't be able to to buy it up front? Name me one thing available to buy by this method that you can't pay for up front. You can still buy every mobile phone although most people choose the subscription model. I think Sony should consider this model too otherwise i can see MS cleaning up. Does anybody think the iphone would sell anywhere near as many units if you had to pay for it in full up front. Ms are already using this sub model but you can still buy an Xbox for cash upfront. The more options available to buy the console the better.
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Re: Microsoft: Subscription model 'pivotal' to Xbox business

Postby ted1138 » 23 Oct 2012, 13:15

If it wasn't for contracts, you wouldn't have half the smart phones and iphones/ipads in peoples hands right now. I'm sure there are plenty of people who are willing to pay £300+ up front for a new console(and no doubt they will sell them at that price too), but there are far more people who would be willing to pay a smaller up front price, followed up by a monthly fee(as long as it covers you for full access plus extra content, plus hardware insurance)...
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Re: Microsoft: Subscription model 'pivotal' to Xbox business

Postby Black Mantis » 23 Oct 2012, 13:26

illage2 wrote:Well looks like I'm not getting the new Xbox then unless the contract is optional. The contract model might be good for Microsoft but not for the customer, it might seem like a good idea but you end up paying more money than the console is worth after the two years.


It is optional, this helps out those who can't afford to splash out the full amount.
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Re: Microsoft: Subscription model 'pivotal' to Xbox business

Postby StonecoldMC » 23 Oct 2012, 13:43

Black Mantis wrote:
illage2 wrote:Well looks like I'm not getting the new Xbox then unless the contract is optional. The contract model might be good for Microsoft but not for the customer, it might seem like a good idea but you end up paying more money than the console is worth after the two years.


It is optional, this helps out those who can't afford to splash out the full amount.


Thanks Mantis. I thought I was the only one who must have misread what MS are trying to do here.

Either buy it outright or buy it and pay it up over time. I get what you guys mean though, having a choice of which option to go for is surely the work of the Devil!
"Nintendo want to make money by supplying fun, Sony want to make money by supplying Art, MS want to make money."

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Re: Microsoft: Subscription model 'pivotal' to Xbox business

Postby FishyGinger » 23 Oct 2012, 14:10

Well f**k EA. Who are we on about here? Oh. I paid for my phone up front because I couldn't handle the money grabbing techniques of subscription. Also my phone doesn't have a subscription available as it if it did, it would work out to 83 pence a month.

Seems sensible enough to me though.
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Re: Microsoft: Subscription model 'pivotal' to Xbox business

Postby Toasted_PSP » 23 Oct 2012, 14:36

The problem I have with a subscription model to buy a console versus a subscription to buy a phone is that after buying the phone the amount of addition money I want to spend on the phone for additional content is minimal. Once I have bought a console I will probably be buy 1 or 2 games a month, possible some brand new launch titles as well. If I am having to find money to pay a subscription for my console each month (And I am doing this because I cannot afford a console upfront) how many games am I going to buy for my new pay monthly console.

This sort of option could work if you have some sort of program in place like PS+ which offers free games each month or if it included access to a cloud based rental service to give you games while you pay off your console.

This just seem like a throwback to the old days when I was at school and the poorer kids who couldn't afford a console would purchase them through catalogues with high monthly fees leaving those poor kid with a new console and the few games they were lucky enough to get with the system because they cannot afford new games on top of their repayment plan.
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Re: Microsoft: Subscription model 'pivotal' to Xbox business

Postby me4pd » 23 Oct 2012, 15:21

The criminal offence that never was: corporate rape.
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Re: Microsoft: Subscription model 'pivotal' to Xbox business

Postby stealth » 23 Oct 2012, 16:21

people are so stupid to be ripped off
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Re: Microsoft: Subscription model 'pivotal' to Xbox business

Postby TheLastDodo » 23 Oct 2012, 16:31

Nice idea MS, no problem with this, just keep the choice of buying upfront for those that would rather pay it that way.
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Re: Microsoft: Subscription model 'pivotal' to Xbox business

Postby a_randompretzel » 23 Oct 2012, 17:30

I don't see a problem with this. If you add it all up without tax, the price is about even for a 4GB Xbox/Kinect with 2 years of Gold. I have no problem with it, the subscription model obviously works out well. If it does come with cable and you don't have to pay extra for it, you're getting more bang for your buck.
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