For those of us wondering what we will be asked to part with if we want the new Xbox One for Christmas, Zavvi seems to offer the best idea with their pre-order price of £399. Microsoft seem to be following a similar pattern for this new release as they did with its predecessor and so I believe we should expect more revelations at E3, a Marketing Campaign beginning September, Viral and Competition Promotion in October and release in time for Christmas Shopping in November.
When the 360 was released we saw a price of £279 ($399) for the Premium Edition. With the Xbox One said to be released with all the 'bells and whistles' in one package its unlikely that we will see a stripped down version this time. A look at the reveal shows us that the device offers roughly the same services as the 360 now but with a few more tricks thrown in as well. The 360 did not have anywhere near that level of functionality at its launch.
A lot has changed since then, Economically, and the main markets for this device have still not fully recovered. The UK, for example, has around about the same Consumer Spending figures as it did eight years ago. So would a price that is 30% higher be wise? Economically no; Consumers have been through the ringer and Confidence is only just starting to pick up. Because of this it could be argued that they will perceive a higher risk involved with purchasing High Ticket items such as this.
Its likely that with Confidence subdued; Christmas Budgets will also be restricted, however, to assess this we need more information. The Average UK Gross Monthly Salary is forecast to be around £2210 ($3337) up 16% from 2005 and in the US £2527 ($3816) up 19%. The lack of an increase in Spending, despite increasing Salaries, is reportedly due to rising costs - especially in energy.
Pricing the Xbox One 30% higher than its predecessor would be unwise. With Consumer Spending being the main indicator of Consumer Demand levels it would seem prudent to price the new device at a similar level than its predecessor. Thankfully reports are emerging that this may be the case. Gamespot UK believe that the device may be priced lower. The Guardian hints on rumours of a £265 price tag. Whatever it may be, it seems logical to assume that the £399 price on Zavvi would seem pricey and potentially exists only to draw Early Adopters into placing orders pre-release.
