Microsoft's near five hundred US dollar price point for the Xbox One was one of the major news points of the Electronic Entertainment Expo this year. However, that's not exactly a good thing. Five hundred dollars is a lot of money to the average consumer, and the direct competition, the PlayStation 4, is one hundred dollars less. Can the Xbox One really be worth the price of admission? Activision says Microsoft has to prove it.
"It's up to them to win the value argument. If you do a focus group of a gazillion people and you show them two prices for two competitive products, 100 percent always prefer the lower price. I think from a first impression standpoint the win goes to Sony, at least as it relates to pricing. Microsoft is going to have to win the hearts and minds and convince people that the higher price point is worth it, and that it provides really meaningful capabilities that will be meaningful to consumers. And it's a long game, so I am sure that's what they intend on trying to do." - Eric Hirshberg, CEO of Activision
I agree with Mr. Hirshberg. Microsoft has a lot to prove with the Xbox One price point. The next generation of video games is going to be quite the show. Bring the popcorn.