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Opinion Business Game Dev Xbox Series X Will Push Subscription Model For Next-Gen Launch, Phil Spencer Says.

IbizaPocholo

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Speaking to IGN, Spencer said Microsoft is looking to "go big" with Xbox All Access for the launch of the Xbox Series X later this year.

In fact, Spencer used the plural, saying Microsoft will "go big with [Xbox All Access] at the launch of the consoles." He might have simply misspoke, or he might have been referring to Microsoft's previously discussed plan to launch more than one next-generation console this year.

In the US, the Xbox All Access program charges you $24/month for an Xbox Series X, or $23/month for an Xbox One S, or $20/month for the Xbox One S All-Digital Edition. You may off the console over a period of 24 months.

In the IGN interview, Spencer said price is a "critical, critical" factor for the Xbox Series X. He said the original Xbox One struggled at launch because it was $100 more expensive than the PS4.

The Xbox All Access subscription program will help "lessen the single impact of a purchase," Spencer said.

Also in the interview, Spencer briefly discussed the impact of COVID-19 on the gaming industry. He said gaming, unlike other industries, is known to be able to survive global market volatility. Spencer pointed out that gaming stayed afloat in 2008 during the financial crisis.

"We would be remiss if we did not talk about the economic realities that could be here [in the fall]," Spencer said. "Not to be all doom and gloom, but you saw the [US] jobless claim numbers that came out. There is a lot of uncertainty [in the market]. I think gaming is a luxury and we should all understand that."

He added: "When we look back at 2008 and what happened with gaming; gaming tends to be durable. It seems that people see it as a value and continue [playing games]. But obviously, people have to take care of their families first."

On the subject of price, Spencer said nothing is decided yet, but he feels comfortable knowing that he has the backing of Microsoft--a trillion-dollar company--to help set the right price.

"There are a lot of things that all of us are watching right now as we think about the right price and the right offering," he said.

Spencer reminded people in the interview that game consoles are often sold at a loss, with sales of games, subscriptions, and accessories helping drive profitability, and this should also be the case with the Xbox Series X. With the backing of a cash-rich company like Microsoft, the Xbox team can be more agile with how it prices the Xbox Series X, Spencer said.
 

Fox Mulder

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People already are used to paying for phones that way. It could be a slam dunk for a console launch if it only cost you $25 a month.

The current All Access plan is only sold through Amazon right now and is a bit steep to buy a Xbox console at this point when prices usually drop.
 

replicant-

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I'm fortunte in that I can afford both consoles day one, but for those on smaller budgets this well help.

Although, purchasing the console on a 0% interest Credit Card probably would be better - if you paid back within the respective period of time.
 
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OneShotThrill

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This is a great idea actually...man I hope Sony and MS bring the heat competitively. We recieve great gaming perks.
 
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Cert.in.Death

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As they should, It’s the largest competitive advantage MS offers over Sony and others. I don’t know how many devs love what it is conceptually, but it raises the floor for many companies while drastically capping the ceiling.
 
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If it is anything like smartphones, there will be some serious credit checks and likely requests for money down or deposits.
 

Psykodad

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This a smart business move, but I don't think it's a good step for console gaming if this becomes standard.
 

Flintty

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All sounds good. I hope the lockdown in UK doesn’t last too long - GAME have suspended All Access (but you can still do it online through Smyths).

Also a good point about the mobile phone model. Most people won’t pay close to a grand for a new phone but eat it up in a contract. The same will apply here and is arguably money better spent in my opinion!
 
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GHG

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Why not?

It allows for potentially more customers. It allows for a faster adoption rate of next-gen. How is that bad for "console gaming"?

The only people it's potentially bad for are the people taking out the loan to get the console.

Microsoft benefit because they sell more consoles and they will stand to gain extra revenue in commission from finance partners. The banks benefit for obvious reasons with the interest rates, so that just leaves the individual who has to pay the installments. They get the console but they don't own it until it's paid in full and they pay more for it than if they had just bought it outright in cash.

As long as the people who are opting for the finance plan are not being irresponsible (or are not being marketed to in misleading/unethical ways) then I don't see the problem with it.
 

Jesb

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This is pretty big news. Could force Sony to offer the same type of business model. Makes so much sense to do this.
 

DynamiteCop!

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Because it's setting a precedent to subscription-based gaming.

This is how paid online multiplayer started and became industry standard in the console space.
Do you expect people to outright purchase cars? Phones? Furniture?

Basically everything has a loan program for it, this is just catching up with everything else, not some paradigm shift in purchasing.
 

darkinstinct

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This is pretty big news. Could force Sony to offer the same type of business model. Makes so much sense to do this.

Xbox started this in the 360 era. Then walked away from it, now returned. IIRC the 360 financing thing was only possible from themselves, Xbox All Access is currently available at Amazon and should be coming to many more stores in 2020. It would take years for Sony to start it now, plus most of their sales happen in Europe where paying outright is still much more common. And of course you need to find banks to finance such an endeavor. Which is a lot cheaper for a company that earns 20 billion a year than for one that earns 4 billion a year.
 

Psykodad

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Do you expect people to outright purchase cars? Phones? Furniture?

Basically everything has a loan program for it, this is just catching up with everything else, not some paradigm shift in purchasing.
It is when they are already focusing on subscription-based gaming to begin with.
 

Jesb

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Xbox started this in the 360 era. Then walked away from it, now returned. IIRC the 360 financing thing was only possible from themselves, Xbox All Access is currently available at Amazon and should be coming to many more stores in 2020. It would take years for Sony to start it now, plus most of their sales happen in Europe where paying outright is still much more common. And of course you need to find banks to finance such an endeavor. Which is a lot cheaper for a company that earns 20 billion a year than for one that earns 4 billion a year.

I think it would be a big advantage for them if they are the only one doing it. With the economy quit a few people will take this as an option instead of dropping $400-500 right away.
 

PropellerEar

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Looked at the All Access deal, looks pretty good (as you get Game Pass Ult. Too) for being a credit/loan program.
 

Tarkus98

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Been waiting to see this happen in one way or another.
This should be good for gamers overall. Options are always a good thing.
Nice to see Microsoft coming out so incredibly aggressive. This better motivate Sony to do some things that are similar and customer friendly.
Seriously if Sony just does a typical rollout this coming gen it is going to hurt them.
Now I am not saying it will cripple and DOOM Sony, they will sell out initial stocks regardless but they need to be going toe to toe with Microsoft right now and I’m just not seeing it. I’m sure they have a plan in place (obviously) but they need to start making some noise soon.
 
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Ashoca

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Because it's setting a precedent to subscription-based gaming.

This is how paid online multiplayer started and became industry standard in the console space.
this is only for the console itself, has nothing to do with the games, its like saying: buyin phones from a carrier is bad for the network and bad for the apps lol
 

Psykodad

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this is only for the console itself, has nothing to do with the games, its like saying: buyin phones from a carrier is bad for the network and bad for the apps lol
I know it's for the console. Think further down the line.

Phones and consoles are apples and oranges btw.
 
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CeeJay

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I can see MS opening pre-orders for SeriesX through All Access first before even announcing the retail price of the console. For all those people (myself included) who would prefer to buy the console outright on day one, would you sign-up to All Access to make sure that you secure your day one console?
 
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Sota4077

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This a smart business move, but I don't think it's a good step for console gaming if this becomes standard.

There is no way they will say this is the only way you can purchase the console. They will absolutely give the option to purchase it outright just as you can with a phone. If I am wrong I will literally give away my entire gaming collection as a punishment for being a presumptuous shithead haha.
 
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Psykodad

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There is no way they will say this is the only way you can purchase the console. They will absolutely give the option to purchase it outright just as you can with a phone. If I am wrong I will literally give away my entire gaming collection as a punishment for being a presumptuous shithead haha.
Your bet is up to you, but I didn't say this is the only way to purchase the console.
 
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anything that gets more people into gaming is good by me.
Bigger audience means more people to play with and more people who buy and consume games.
All access plus gamepass gives people a chance to jump into next gen with a giant library at launch with a small amount of money up front.
 
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