would you go for free system with like a 4 year contract ($20 a month maybe) to use thier service, or pay as you go but not own like with a cable box?
Heck ya.
28%
[ 2 ]
No way, dont like being commited to a contract.
71%
[ 5 ]
Total Votes : 7
gamexxover Moderator
Joined: Feb 17, 2007 Posts: 2131
XP: 143,168
Posted: Fri Jul 06, 2007 1:18 am Post subject: Future Game System Free or lease?
I have been doing some reading on the net the last few months on how profitable xbox live is for MS. The xbox live service, all the downloads and now in game advertising. It used to be you buy a game system, and games and thats it, that is where they had a chance to make money, Now the big bucks are coming from downloads of media and extra content for existing games. And advertisers pay big bucks as well and will only continue to grow. I can easily see companies like MS in the future offering systems for free with the signing of a contract to use xbox live for a certain minimum ammount of time such as is done with many cell phones these days. Or like cable TV, the box is provided to you as long as you are using thier service. In the future if you want to play on a gaming system you will need to be a subscriber to a service.
The reason I think this is possible is because an online player is a valuable player, if you are not online you are not going to buy any downloads and also the more people on live, the more they get from advertisers. Selling of hardware is falling behind content and service as far as revenue is concerned. Also many can not afford an expensive game system but could swing a reasonable monthly payment to use the system. Same reason many use cable tv rather than satalite tv service.
Just a thought, Thats something I would think about if I got to make some of the financial decisions.
TAKE POLL ABOVE
Mattster Moderator
Joined: Jun 10, 2007 Posts: 961 Location: Newcastle, Australia XP: 55,282
Posted: Sun Jul 08, 2007 8:46 am Post subject:
Quote:
an online player is a valuable player, if you are not online you are not going to buy any downloads and also the more people on live, the more they get from advertisers
I think MS have sort of dropped the ball on this for the XBOX Live Bans. You think that everyone that was banned would pay $70 a year for Live and then potential downloads that these people would make. MS would have lost hundreds of thousands of dollars (possibly Millions) from this descion.
What they are banking on is that people would go out and buy a new console. But everyone aint as cashed up as Billy Gates and cant afford a new console for the luxury of playing online.
So a people are modding their console, so what. I do it for backing up games that I have legitimately purchased.
You know these games arent cheap, $120AU for a game and if it gets scratched that is money down the crapper.
I can understand booting people for Game Save Cheats, but to boot people like me is a bit unfair I think.
That is my rant, what do you guys think _________________________________________________________ Mattster
I thought they actualy lost money on each console sold, am I wrong?
Mattster Moderator
Joined: Jun 10, 2007 Posts: 961 Location: Newcastle, Australia XP: 55,282
Posted: Thu Jul 26, 2007 8:42 am Post subject:
That is correct. MS did lose $$ on each console sold. I read somewhere is was in the region of $40US a console. But they make this back very quickly with the profit they get off games, Xbox live and Micro Transactions. _________________________________________________________ Mattster
Joined: Jul 28, 2005 Posts: 1013 Location: Out in the Boonies XP: 450
Posted: Thu Jul 26, 2007 8:47 am Post subject:
Well before this extended warranty, I had read that they were actually making money off the 360. I wont go digging it up, but once they revise the 360, falcon they will start making money off it. Cheaper to manufacture 65nm chips.
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