[Update with Xbox One S sub price] Microsoft wants to bundle Consoles and Services into monthly subscription sort of like phone + data contracts

[AlTech]

Microsoft wants to bundle Xbox Consoles and Services such as Xbox Live Gold and Game Pass into one monthly subscription similar to how people pay for phones + mobile data on contract from carriers.

 

The monthly subscription prices for an Xbox One X + services bundle would be around $34.99 per month for 24 months and would include the full price of the console + cost of their services.

 

The monthly subscription prices for an Xbox One S + services bundle would be around $21.99 per month for 24 months and would include the full price of the console + cost of their services.

 

This allegedly will be called "Xbox All Access" and will be US only at launch.

 

Quote

Microsoft is planning to unveil an Xbox All Access service that will bundle the company’s Xbox One consoles with Xbox Live and Xbox Game Pass for a monthly fee. Codenamed Project Largo, Microsoft has been working towards the subscription service in recent months. Sources familiar with Microsoft’s plans tell The Verge that both the Xbox One S and Xbox One X will be offered as a subscription, and that Microsoft is planning to offer its Xbox One X bundled with Xbox Live Gold and Xbox Game Pass for $34.99 per month over 24 months.

The subscription will be available from Microsoft’s retail stores, and the company is also working with PC makers to try and offer this bundle elsewhere. Windows Central reported on Xbox All Access today, after I teased details of the new service three weeks ago. Microsoft will limit its Xbox All Access service to US consumers initially, but if it’s successful then it could appear in other markets in the future. Microsoft also offered a subsidized Xbox 360 bundle with Xbox Live Gold more than six years ago.

 

Quote

Windows Central reports that its sources inside Microsoft indicate that the company is currently planning to roll out an "Xbox All Access" plan, which would give users free hardware if they sign up for two years of Xbox Live and the Netflix-style Xbox Games Pass. All Access subscriptions would cost about $22 a month for a plan with Xbox One S hardware or $35 a month for the more powerful Xbox One X hardware, according to the report. Users would be able to cancel their subscriptions after two years and keep the hardware.

 

This sounds like a nice idea although the price per month seems a bit high.

 

With the proposed price for the Xbox One X bundle you'd pay in total $839.76 across 2 years which covers the $499 price of the console and $60 per year of Xbox Live Gold and 24 Months of Xbox Game Pass would cost $239.96.

 

So with this bundle you'd actually save $19.20 .

 

Idk if the bundle is really worth saving $19.20 over. It would probably be more attaractive for those who have difficulty with spending that much money upfront or who need financing options.

 

Inb4 Microsoft sets up Xbox Dealerships to sell on contract Xbox consoles

 

Sources:

https://www.theverge.com/2018/8/22/17771412/microsoft-xbox-all-access-xbox-one-x-services-subscription

https://arstechnica.com/gaming/2018/08/report-xbox-all-access-to-offer-free-hardware-with-two-year-agreement/

[Neftex]

the savings is assuming youd be paying those services normally, i sure wouldnt

 

my use case is pretty much console + games that i buy, so i dont think its worth it at all?

[AlTech]

Just now, Neftex said:

the savings is assuming youd be paying those services normally, i sure wouldnt

 

my use case is pretty much console + games that i buy, so i dont think its worth it at all?

But instead of buying the games individually the idea is to pay for Xbox Games Pass which you can think of as the Netflix of Xbox One Games.

[WMGroomAK]

1 minute ago, AluminiumTech said:

But instead of buying the games individually the idea is to pay for Xbox Games Pass which you can think of as the Netflix of Xbox One Games.

I'll admit that I haven't tried out the Games Pass from Microsoft, but my big issue with a Netflix model would be how long a game may remain as being available on Game Pass or it's rotation and having to wait for the next rotation to play a game I want to.  Of course, I still like having physical media as much as possible so I can go back and play some of my favorite older games whenever I want...

[Taf the Ghost]

Microsoft be like, "We want that Verizon money!".

[Syntaxvgm]

They did this at one point with 360s.

 

[AlTech]

Just now, Taf the Ghost said:

Microsoft be like, "We want that Verizon money!".

Actually, if you planned to buy those things anyways separately they'd make less money with you paying bundle sub .

 

The only way they'd make money is through people who'd never plan to buy those things separately and pay for bundle sub.

[Taf the Ghost]

But, more seriously, this isn't a bad idea from MS. There's a market for this type of stuff, though I'm waiting for "Microsoft Financial Services" division to crop up. 

 

M$, going where every Car Maker has gone to die before!

[shermantanker]

I could actually get behind this. The amount of quality games on game pass is absurd, and has been well for it for awhile now. I don't really see much of a downside to this for a lot of people.

[Taf the Ghost]

Just now, AluminiumTech said:

Actually, if you planned to buy those things anyways separately they'd make less money with you paying bundle sub .

 

The only way they'd make money is through people who'd never plan to buy those things separately and pay for bundle sub.

Gifts, especially holiday gifts. Look for the "3 month Sub" package for grandparents to give their grandkids.

[shermantanker]

2 minutes ago, AluminiumTech said:

Actually, if you planned to buy those things anyways separately they'd make less money with you paying bundle sub .

 

The only way they'd make money is through people who'd never plan to buy those things separately and pay for bundle sub.

And I would imagine the monthly revenue stream is welcome.

[Taf the Ghost]

2 minutes ago, Syntaxvgm said:

They did this at one point with 360s.

 

Given the 2 year lifespan of this deal, I think we can assume 2020 is the next console launch window.

[Taf the Ghost]

Just now, shermantanker said:

And I would imagine the monthly revenue stream is welcome.

Market Share, regular revenue, clearing old stock, user buy-in. 

 

People complain, but the entire Smartphone industry was built off this model. It kind of works.

[AlTech]

1 minute ago, Taf the Ghost said:

Market Share, regular revenue, clearing old stock, user buy-in. 

 

People complain, but the entire Smartphone industry was built off this model. It kind of works.

Except when people fail the credit check so the mobile carrier says no .

 

Cries inside.

[Syntaxvgm]

2 minutes ago, Taf the Ghost said:

Given the 2 year lifespan of this deal, I think we can assume 2020 is the next console launch window.

no joke 2012 is when I think they did it with 360s

[Spotty]

5 minutes ago, Taf the Ghost said:

Given the 2 year lifespan of this deal, I think we can assume 2020 is the next console launch window.

Or if they wanted to be real dicks, they'd get everyone locked in to a 2 year contract for the XboxOne and then release the next gen console for Christmas 2018.  

[Taf the Ghost]

4 minutes ago, Syntaxvgm said:

no joke 2012 is when I think they did it with 360s

Xbox One launched in 2013. LOL. I guess next year it is.

1 minute ago, Spotty said:

Or if they wanted to be real dicks, they'd get everyone locked in to a 2 year contract for the XboxOne and then release the next gen console for Christmas 2018.  

They'd have already announced it if it was this year. Next year might be a different issue. But that would also mean a 16/14nm node for the product. 

 

I'd be surprised if we get any more consoles on the current Fab nodes, to be honest. Xbox One X was probably meant to bridge the gap until ~2020/2021 for that purpose.

[Ryujin2003]

The reason I never strayed from PlayStation...

[Arika]

how very stupid. and what if after 6 months you n longer wish to keep it? do they charge you the break cost like they do with phones? or do you then have to ship the console back and they just stop payments?

[D13H4RD]

It's probably only viable for the short term. 

 

But if you keep your console for years, you'd be much better off buying and owning the actual console and games than leasing them. 

[Stefan Payne]

Microsoft

 

Allows you to play Xbox 360 Games on the XBox One.

Requires Credit Card/Paypal/bank number to buy that 360 Game. Or you could buy it on a 360...

 

Since they already ported most of the Games for Windows anyway, there doesn't seem to be a point to get the XBox One anyway...

[FPSwithaWacomTablet]

Basically a Tivo but with gaming?

[Brooksie359]

18 hours ago, D13H4RD2L1V3 said:

It's probably only viable for the short term. 

 

But if you keep your console for years, you'd be much better off buying and owning the actual console and games than leasing them. 

From my understanding you keep the Xbox at the end of the 2 years. That's would be the same as buying a car with a loan and paying it off with payments each month rather than paying the full price up front. 

[dalekphalm]

18 hours ago, Brooksie359 said:

From my understanding you keep the Xbox at the end of the 2 years. That's would be the same as buying a car with a loan and paying it off with payments each month rather than paying the full price up front. 

My impression is that after 2 years, you've fulfilled the "contract" (equivalent: you finished paying off the Tab on your phone) - at that point, you outright and fully own the Xbox, so at that point you could cancel all services - or alternatively, switch to the "regular" XBL Gold subscription (and/or GamePass).

 

Seems like a decent way to get an Xbox w/ a ton of services (Seriously, XBL Gold gives you 2+ (3 if you consider the free 360 Arcade game in addition to the 2 XBO games) per month, and GamePass actually has a really badass library of games you can access.

 

I might consider this if it comes to Canada - I'd sell my XBO S and get the X - I already pay for XBL Gold (though I buy the 12-month card from Costco at a discount).

[dalekphalm]

On 8/23/2018 at 7:26 PM, Ryujin2003 said:

The reason I never strayed from PlayStation...

The reason you never strayed from PlayStation was because of a device subsidized contract service that was never available until just now...?

On 8/23/2018 at 8:19 PM, Arika S said:

how very stupid. and what if after 6 months you n longer wish to keep it? do they charge you the break cost like they do with phones? or do you then have to ship the console back and they just stop payments?

My opinion on what they will do (not confirmed):

If after 6 months, you no longer wish to keep it, the same thing happens as if it were your smartphone: You buy out the remaining contract fee, and sell the hardware.

 

Whether that fee will end up being the entire $34.99 over the remaining term, or whether it's just the hardware fee over said term, is unknown currently.

 

Ideally when you sign up for the service, they provide a hardware "cost" breakdown (Eg: When you start, you owe "$400" for hardware, and that owed amount is reduced by $16.67 every month).

 

This isn't stupid at all - if the contract termination fees aren't fucking stupid, then this would actually be a great way to get an Xbox for next to nothing up front, and also get access to a bunch of games without having to buy any. I'd consider this a decent "starter kit".

 

It all comes down to the terms, and how consumer friendly they are.