Xbox One Will Get A Subsidised Version But Later In Its Life

Albert Penello, lead director and planner of the Microsoft hardware division, has been telling Gamespot of Microsoft’s intentions to introduce a subsidised version of the Xbox One. Of course Microsoft has absolutely no intention of introducing a subsidised version any time soon as it looks to capitalise on the “launch buzz” to sell the console at a profit-generating price.

“I think at launch, most people are saving up and they’re going…they want in.”

However, as time progresses Microsoft will consider introducing a subsidised version much like they currently do with the Xbox 360.

“The subsidized model really makes a lot of sense towards the end of the life. People are more price sensitive. They are more cost conscious.”

Microsoft’s Xbox One currently costs $500 which is $100 more than the PlayStation 4.

In the long term we should expect to see the price of the Xbox One fall irrespective of whether Microsoft choose to subsidise the console as once demand falls and production gets into full swing the costs of producing and selling the Xbox One console should drop quite a bit. Who knows Microsoft might not subsidise the price but instead bundle free games to make the deal sweeter like they are currently doing with their Fifa 14 promotion.

Image courtesy of Microsoft