Microsoft will charge for key XBone features

Vitalius · August 13, 2013

I think the thing is that the $500 you pay for the Xbox One barely covers the cost that went into R&D of the device + actual cost of production. I believe the cost of XBL Gold covers maintenance and the cost to keep the other services running. As an outsider its pretty easy to say of they should make it free but it might not work financially for them.

For Sony, I have no idea how they manage PSN for free...it's awesome that they do it.

What I believe is wrong however, is that you need to then have another subscription for Hulu+ or Netflix or wte. I think MS should make deals with the other companies to create packages where the other services are free. For example if they make XBL Gold $100/year but had Netflix, Hulu+, NFL Network, and some other services for free I would definitely buy the Xbox One as an entertainment device.

Just saying, PSN is free, but online play will require PS+ ($50 a month) once the PS4 launches IIRC.

Though you get 2 free games a month (AAA games like Uncharted 3 and Deus Ex Human Revolution, among others) every month. So yeah. I have no idea how they do it either.

rashdanml · August 13, 2013

Just saying, PSN is free, but online play will require PS+ ($50 a month) once the PS4 launches IIRC.

Though you get 2 free games a month (AAA games like Uncharted 3 and Deus Ex Human Revolution, among others) every month. So yeah. I have no idea how they do it either.

I'd guess something along the lines of: Give subscribers MORE, entice even more new subscribers as a result. The more subscribers, the more money they make; on the flip side, the more they distribute, the cheaper it'd cost per item they distribute (whether physical or digital). One of the basic rules of manufacturing - the higher the volume, the cheaper the unit/incremental cost per item, allowing the possibility to sell the item at a lower price while still retaining a healthy profit margin. There's really no "manufacturing" cost for digital items, so really, the only cost is data transfer and licensing to distribute, which are most likely bulk/percentage amounts with a break-even point beyond which anything they do is raw profit.

PS+ is amazing.