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You're making this seem trivial, but ignoring much of the current must have gadgets that already exist that use this exact sales model. People don't save up to buy lots of things that they could well do without, or do without a prestige version that they just can't afford to pay cash. Yes it's a games console, but why is that any different to a cell phone, or TiVo, or remodeling your bathroom, or leasing a car?
It's not, and I never save up for anything, all 12 or 18 mo no interest for me. It's much easier for me to budget something monthly than to have to try to save up for it on the side.
It's not, and I never save up for anything, all 12 or 18 mo no interest for me. It's much easier for me to budget something monthly than to have to try to save up for it on the side.
Well technically if you're doing this you're just saving in reverse... Using a credit line for purchases, and paying off as you go with fixed payments. It's the American Way .
Actually this illustrates the inanity of the outrage of the OP, since you can get pretty much anything on interest free credit from any retailer. This is just a method supplied by the manufacturer and also bundling an associated service.
It would not surprise me if this is a test run for the next gen consoles. No more $400-$500 console entry barrier, but lots of $100 entries with $15-$20/month contracts for 2 years. Considering it's the licensing and royalties that manufacturers make their profits from, more consoles sold means more sales, while amortizing the initial costs of market entry for a new console across 2 or more years.
So, does that mean you should only use cash to buy a console? Is a credit card OK to buy one with?
I don't think it's a good idea to buy a non-necessity with a credit card - unless you are immediately paying it off. (Basically, buy something, pay it off that month, etc to build credit) I paid for all my consoles with cash (debit card and/or paypal).
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Originally Posted by Gungnir
It's a sales model that's been used for at least a decade or more in other consumer electronics products, some of which result in you owning the equipment, others where you just lease the equipment. I've already mentioned cell phones, but you can own a TiVo box (with lifetime service for an additional $499 one time charge, or $14.99 a month), or a cable box, or a modem for your internet provider most people either lease to buy (via their cable contract) or lease via the same contract (at a nominal monthly fee).
For my cellphone, it's not a "Pay $600 now or pay $x/month for the device", it's "Pay $600 now or just agree to keep us as your provider like you're planning on anyways". There's no change in my bill dependent upon which phone I choose.
Now, one could say that the same concept applies to this deal - at $15/month for Gold. The difference is that my cellphone plan would remain the exact same cost - with or without a "subsidized phone". One month of XBOX Live Gold is $10. With this Xbox, it is $15. There's a $5 difference in just the month-to-month. Now, factor in that many people wait until there are sales on Xbox Live and/or buy a year at a time ($60 or $5/month) and that price break difference is even greater.
As for the others, I don't pay for cable, but when I did, there wasn't a monthly fee for my DVR Box, I owned my own modem, etc.
Quote:
Originally Posted by Gungnir
Same thing here. Just out of interest, how many devices do you have that are bought and paid for without the need for a service contract?
I currently have two phones that were bought and paid for in cash. They are backups for if any phones on my plan go down and we need one temporarily.
Quote:
Originally Posted by Gungnir
Has anyone played WoW or other Pay-to-Play OLG? Would you have been prepared to pay $950 for lifetime service? Or did you pay $50 entry and $14.99/month for 60 months or more?
I would put a WoW subscription on the same level as a LIVE subscription. It's not like you were renting to own the computer you played it on with the game.
To me, it just seems silly because a video game console is not a necessity. It's a luxury. A car, while typically considered a luxury, is in fact a necessity in many places if you want a job better than "cashier". In the end, it will mean more people will have the systems and the manufacturers will get more in profits. Doesn't mean I still can't find it a bit silly.
For my cellphone, it's not a "Pay $600 now or pay $x/month for the device", it's "Pay $600 now or just agree to keep us as your provider like you're planning on anyways". There's no change in my bill dependent upon which phone I choose.
Not if you use T-Mobile you can save about $230 for buying an unlocked phone, and getting a discount over 2 years. Plus there are rulings from the Supreme Court that require cell providers to reduce plan costs and termination fee's for unlocked cell phones that are joined to their network. This may turn out to be increasing the costs of those plans that have a phone bundled with the service, rather than reducing costs for the unlocked owners however, but that will still mean that in real terms an unlocked cell phone will be cheaper than the associated locked bundled package.
Quote:
Originally Posted by gallowsCalibrator
Now, one could say that the same concept applies to this deal - at $15/month for Gold. The difference is that my cellphone plan would remain the exact same cost - with or without a "subsidized phone". One month of XBOX Live Gold is $10. With this Xbox, it is $15. There's a $5 difference in just the month-to-month. Now, factor in that many people wait until there are sales on Xbox Live and/or buy a year at a time ($60 or $5/month) and that price break difference is even greater.
As for the others, I don't pay for cable, but when I did, there wasn't a monthly fee for my DVR Box, I owned my own modem, etc.
You can claim there was no itemized cost for the DVR, you can't claim that there wasn't a fee. There may not have been separate billing for the DVR, but I'd lay odds there was an itemized equipment cost, and I'd also lay odds that the cable supplier had 2 or 3 tiers of equipment costs based around the package you had, and what equipment you owned. It would be naive to assume that the DVR you were supplied was not charged for by the cable company. Comcast for instance is currently offering a "triple play" XFINITY package that includes a free DVR service for 6 months, if you take out a 24 month contract. What do you think happens from month 6 through 24 if you keep the DVR? This is a slightly shady tactic, because many people will get the DVR, sign the contract, then find an additional cost on their bill in month 7, since the DVR is now chargeable.
Quote:
Originally Posted by gallowsCalibrator
I would put a WoW subscription on the same level as a LIVE subscription. It's not like you were renting to own the computer you played it on with the game.
Actually WoW isn't even on the same level as a LIVE subscription, can you download other game titles through WoW? Can you watch Movies, TV Series, or Sports through WoW? Without hardware for WoW you're stuck, you are for Xbox Live too, but how many people subscribe through the Xbox Live Web Interface, vs. from their Dashboard? While I know this is not the function nor purpose of WoW, at the end of the day the principle is the same, they even have similar pricing structures, for subscription monthly, quarterly or annually.
Quote:
Originally Posted by gallowsCalibrator
To me, it just seems silly because a video game console is not a necessity. It's a luxury. A car, while typically considered a luxury, is in fact a necessity in many places if you want a job better than "cashier". In the end, it will mean more people will have the systems and the manufacturers will get more in profits. Doesn't mean I still can't find it a bit silly.
Ah, but you own a cell phone, and even consider it a necessity, it's been that way for at least the last 10 years, but in the 5-10 years before that it was considered a luxury, how did people ever manage before them I wonder. I got my first cellphone in 1990, and the general response from family, friends and coworkers was "why the hell do you want that thing, they'll never catch on?". Indeed both my parents still think that cell phones are a bit silly. Yet here we are both agreeing that to us at least they're a necessity.
Necessity, and luxury are actually highly mutable depending on what society considers them to be, and your personal circumstances. So if we agree on this, then we're just quibbling about whether your personal opinion on the luxury of a cell phone is more valid than my personal opinion on the necessity of a game console. Your position becomes less secure if you were to admit that you have any game applications on your cell phone however
Well as I showed, America is in debt for buying cell phones, and has been for many years, how many people do you know who buy contract free and unlocked cellphones? More to the point, how many people do you know who keep that same cell phone once the initial contract has expired? You don't need a cell phone, you've only been convinced it's critical to your life, you don't need a cell phone that also lets you email, browse, text, or play Angry Birds. Did you know that the fastest expanding sector of gaming is Mobile, so people out there are already in debt for playing video games.
I see your point but I think cell phones are in a category of their own.
For one, they replace your land line at home. You can cancel it and make up the difference in cost. Second they are needed by most, at least now a days in this tech age we live in. Many, including I use it for business. In fact many companies pay the bill for their employees. Third, even though you can play games on them, they are not specifically used for entertainment. And yes I did pay for a contract
I'm curious to know if they let you transfer the XBox Live account to another device. Meaning when the next gen comes out, if you buy one do you then have to start over with a new Live account?
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