Contract Consoles

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Posted 9:25pm on Tue 19 February 2013
altaranga
  • Posts: 7,357
01
Contract Consoles
We live in interesting times.

It is widely expected that the PS4 will be announced tomorrow. It is widely expected that the NextBox will be announced at E3. And it is widely expected that both will be available by the end of the year (possibly Q1 2014 in Europe).

The has been a lot of chatter about the rumoured prices for these new consoles, most of them ranging from £300 to £500. Now I don't know what is an acceptable price for each of these, some might say something is only worth what you are willing to pay for it. But it did sort of get me thinking...

Every year or so our Californian friends Apple seem to bring out a new iPhone. This is usually preceded by the usual conference thing, a lot of hype and then queues at dawn. One thing that doesn't seem to bother people too much is the price, which is odd considering a bottom of the range iPhone 5 will set you back over £500 (with the top model costing nearly £700).

Only... how many of us would actually buy an iPhone outright? How many of us buy any mobile/cell phone outright? Don't most of us get our new phones via a contract bundle?

What if you could get a new console on contract?

Alright it might not be quite the same thing but just think about it for a second. What if Microsoft or Sony offered a bundle package where you paid them a fixed price per month for so many months and for that you get a console and full access to their online services. For example:

Sony Playstation 4: Option 1
You get a 100GB console (worth £300)
3 Years PSN+ subscription (worth £120)
You pay £10 a month for 3 years.

That's peanuts compared to most phone contracts.

Now obviously these numbers are made up, but to be honest they're not that important. It's the concept of buying a console on some sort of contract over a fixed period of time that I thought might work, and to some might be appealing.

So what do you lot think? Would this sort of thing make you more likely to buy a new console one day 1? Do you think it could work? If so why do you think no-one is doing it already?
Posted 9:32pm on Tue 19 February 2013
dudester
  • Posts: 4,084
00
In response to Topic
We live in interesting times.

It is widely expected that the PS4 will be announced tomorrow. It is widely expected that the NextBox will be announced at E3. And it is widely expected that both will be available by the end of the year (possibly Q1 2014 in Europe).

The has been a lot of chatter about the rumoured prices for these new consoles, most of them ranging from £300 to £500. Now I don't know what is an acceptable price for each of these, some might say something is only worth what you are willing to pay for it. But it did sort of get me thinking...

Every year or so our Californian friends Apple seem to bring out a new iPhone. This is usually preceded by the usual conference thing, a lot of hype and then queues at dawn. One thing that doesn't seem to bother people too much is the price, which is odd considering a bottom of the range iPhone 5 will set you back over £500 (with the top model costing nearly £700).

Only... how many of us would actually buy an iPhone outright? How many of us buy any mobile/cell phone outright? Don't most of us get our new phones via a contract bundle?

What if you could get a new console on contract?

Alright it might not be quite the same thing but just think about it for a second. What if Microsoft or Sony offered a bundle package where you paid them a fixed price per month for so many months and for that you get a console and full access to their online services. For example:

Sony Playstation 4: Option 1
You get a 100GB console (worth £300)
3 Years PSN+ subscription (worth £120)
You pay £10 a month for 3 years.

That's peanuts compared to most phone contracts.

Now obviously these numbers are made up, but to be honest they're not that important. It's the concept of buying a console on some sort of contract over a fixed period of time that I thought might work, and to some might be appealing.

So what do you lot think? Would this sort of thing make you more likely to buy a new console one day 1? Do you think it could work? If so why do you think no-one is doing it already?

» Go to altaranga's original post
I can't remember the full details but wasn't there an offer for xbox similar to this in america?
Posted 10:08pm on Tue 19 February 2013
dav2612
  • Posts: 6,680
00
In response to Topic
We live in interesting times.

It is widely expected that the PS4 will be announced tomorrow. It is widely expected that the NextBox will be announced at E3. And it is widely expected that both will be available by the end of the year (possibly Q1 2014 in Europe).

The has been a lot of chatter about the rumoured prices for these new consoles, most of them ranging from £300 to £500. Now I don't know what is an acceptable price for each of these, some might say something is only worth what you are willing to pay for it. But it did sort of get me thinking...

Every year or so our Californian friends Apple seem to bring out a new iPhone. This is usually preceded by the usual conference thing, a lot of hype and then queues at dawn. One thing that doesn't seem to bother people too much is the price, which is odd considering a bottom of the range iPhone 5 will set you back over £500 (with the top model costing nearly £700).

Only... how many of us would actually buy an iPhone outright? How many of us buy any mobile/cell phone outright? Don't most of us get our new phones via a contract bundle?

What if you could get a new console on contract?

Alright it might not be quite the same thing but just think about it for a second. What if Microsoft or Sony offered a bundle package where you paid them a fixed price per month for so many months and for that you get a console and full access to their online services. For example:

Sony Playstation 4: Option 1
You get a 100GB console (worth £300)
3 Years PSN+ subscription (worth £120)
You pay £10 a month for 3 years.

That's peanuts compared to most phone contracts.

Now obviously these numbers are made up, but to be honest they're not that important. It's the concept of buying a console on some sort of contract over a fixed period of time that I thought might work, and to some might be appealing.

So what do you lot think? Would this sort of thing make you more likely to buy a new console one day 1? Do you think it could work? If so why do you think no-one is doing it already?

» Go to altaranga's original post
I think it is a great idea (TU) but as someone whose phone contract can't even get him an iPhone 3, the numbers are very important. If your example package was reality then I'd sign up in an instant.
Posted 2:28am on Wed 20 February 2013
MrHEWBO
  • Posts: 923
00
In response to Topic
We live in interesting times.

It is widely expected that the PS4 will be announced tomorrow. It is widely expected that the NextBox will be announced at E3. And it is widely expected that both will be available by the end of the year (possibly Q1 2014 in Europe).

The has been a lot of chatter about the rumoured prices for these new consoles, most of them ranging from £300 to £500. Now I don't know what is an acceptable price for each of these, some might say something is only worth what you are willing to pay for it. But it did sort of get me thinking...

Every year or so our Californian friends Apple seem to bring out a new iPhone. This is usually preceded by the usual conference thing, a lot of hype and then queues at dawn. One thing that doesn't seem to bother people too much is the price, which is odd considering a bottom of the range iPhone 5 will set you back over £500 (with the top model costing nearly £700).

Only... how many of us would actually buy an iPhone outright? How many of us buy any mobile/cell phone outright? Don't most of us get our new phones via a contract bundle?

What if you could get a new console on contract?

Alright it might not be quite the same thing but just think about it for a second. What if Microsoft or Sony offered a bundle package where you paid them a fixed price per month for so many months and for that you get a console and full access to their online services. For example:

Sony Playstation 4: Option 1
You get a 100GB console (worth £300)
3 Years PSN+ subscription (worth £120)
You pay £10 a month for 3 years.

That's peanuts compared to most phone contracts.

Now obviously these numbers are made up, but to be honest they're not that important. It's the concept of buying a console on some sort of contract over a fixed period of time that I thought might work, and to some might be appealing.

So what do you lot think? Would this sort of thing make you more likely to buy a new console one day 1? Do you think it could work? If so why do you think no-one is doing it already?

» Go to altaranga's original post
I'd be all over that since paying upwards of £300 in 1 payment would be pretty difficult for me
Posted 7:57am on Wed 20 February 2013
Wido
  • Posts: 13,883
00
In response to Topic
We live in interesting times.

It is widely expected that the PS4 will be announced tomorrow. It is widely expected that the NextBox will be announced at E3. And it is widely expected that both will be available by the end of the year (possibly Q1 2014 in Europe).

The has been a lot of chatter about the rumoured prices for these new consoles, most of them ranging from £300 to £500. Now I don't know what is an acceptable price for each of these, some might say something is only worth what you are willing to pay for it. But it did sort of get me thinking...

Every year or so our Californian friends Apple seem to bring out a new iPhone. This is usually preceded by the usual conference thing, a lot of hype and then queues at dawn. One thing that doesn't seem to bother people too much is the price, which is odd considering a bottom of the range iPhone 5 will set you back over £500 (with the top model costing nearly £700).

Only... how many of us would actually buy an iPhone outright? How many of us buy any mobile/cell phone outright? Don't most of us get our new phones via a contract bundle?

What if you could get a new console on contract?

Alright it might not be quite the same thing but just think about it for a second. What if Microsoft or Sony offered a bundle package where you paid them a fixed price per month for so many months and for that you get a console and full access to their online services. For example:

Sony Playstation 4: Option 1
You get a 100GB console (worth £300)
3 Years PSN+ subscription (worth £120)
You pay £10 a month for 3 years.

That's peanuts compared to most phone contracts.

Now obviously these numbers are made up, but to be honest they're not that important. It's the concept of buying a console on some sort of contract over a fixed period of time that I thought might work, and to some might be appealing.

So what do you lot think? Would this sort of thing make you more likely to buy a new console one day 1? Do you think it could work? If so why do you think no-one is doing it already?

» Go to altaranga's original post
No, consoles should never go on console, period. Its unfair for those who buy at launch and will have to continue paying the price per month than say someone who buys one later at a cheaper price. Signing that contract and not being able to pay the prices for the same package than someone who buys later down the sign is very unfair and a kick in the nuts.

I'm paying £32 a month of my Samsung Galaxy SII. Fast forward to the Christmas that just gone, I can get a better package deal with more free wifi date allowance, more minutes and the same unlimited texts for just £26 a month, and this is with O2, and I'm with O2.. Saving £6 sure in terms of the tariff or I upgrade to the SIII and probably pay the same or more.

Phones obviously differ if a console was to be on contract. The online side of things you don't necessarily have to have it, yet, if you want that full package then you will to have it on terms of the Xbox. Playstation on the other hand is free with the option to + for £29.99 a year?
Posted 8:25am on Wed 20 February 2013
MJTH
  • Posts: 2,901
00
In response to Wido's
No, consoles should never go on console, period. Its unfair for those who buy at launch and will have to continue paying the price per month than say someone who buys one later at a cheaper price. Signing that contract and not being able to pay the prices for the same package than someone who buys later down the sign is very unfair and a kick in the nuts.

I'm paying £32 a month of my Samsung Galaxy SII. Fast forward to the Christmas that just gone, I can get a better package deal with more free wifi date allowance, more minutes and the same unlimited texts for just £26 a month, and this is with O2, and I'm with O2.. Saving £6 sure in terms of the tariff or I upgrade to the SIII and probably pay the same or more.

Phones obviously differ if a console was to be on contract. The online side of things you don't necessarily have to have it, yet, if you want that full package then you will to have it on terms of the Xbox. Playstation on the other hand is free with the option to + for £29.99 a year?

» Go to Wido's original post
I agree with this, the phone market is large and very diverse, with many new phones being released every year. Phones are the products that people are buying. Where as with games terms with consoles we are really limited to just 5 options (including handhelds). The consoles themselves don't make the money for manufacturers, the product that makes them the money is games themselves. Microsoft and Sony make a loss on consoles anyway so drag out that loss over the course of 3 years?

And because console, currently, are limited for set 5-8 cycles, the manufacturers can't really expect them to stay the same price forever. Console launch expensive, but gradually every 2-3 years get price cuts. If you are paying, hypothetically £10 a month for a deal, and then within a 2 years through your still paying, but said deal is £3 cheaper, there would be outrage from the community.

Phone deals depreciate very quickly because by the time they are noticeably cheaper, a new better phone or model is already out. Where as if you are pay monthly for a console, the money you are paying will still be on your mind after two years of a 3 year contract. So if there is a price cut, you will see people paying less monthly then you do for the same. It won't be like if you buy a console, lump sum, at launch, because two year down the line money you paid at launch will be more of a distant memory.
Posted 8:56am on Wed 20 February 2013
dav2612
  • Posts: 6,680
00
In response to Topic
We live in interesting times.

It is widely expected that the PS4 will be announced tomorrow. It is widely expected that the NextBox will be announced at E3. And it is widely expected that both will be available by the end of the year (possibly Q1 2014 in Europe).

The has been a lot of chatter about the rumoured prices for these new consoles, most of them ranging from £300 to £500. Now I don't know what is an acceptable price for each of these, some might say something is only worth what you are willing to pay for it. But it did sort of get me thinking...

Every year or so our Californian friends Apple seem to bring out a new iPhone. This is usually preceded by the usual conference thing, a lot of hype and then queues at dawn. One thing that doesn't seem to bother people too much is the price, which is odd considering a bottom of the range iPhone 5 will set you back over £500 (with the top model costing nearly £700).

Only... how many of us would actually buy an iPhone outright? How many of us buy any mobile/cell phone outright? Don't most of us get our new phones via a contract bundle?

What if you could get a new console on contract?

Alright it might not be quite the same thing but just think about it for a second. What if Microsoft or Sony offered a bundle package where you paid them a fixed price per month for so many months and for that you get a console and full access to their online services. For example:

Sony Playstation 4: Option 1
You get a 100GB console (worth £300)
3 Years PSN+ subscription (worth £120)
You pay £10 a month for 3 years.

That's peanuts compared to most phone contracts.

Now obviously these numbers are made up, but to be honest they're not that important. It's the concept of buying a console on some sort of contract over a fixed period of time that I thought might work, and to some might be appealing.

So what do you lot think? Would this sort of thing make you more likely to buy a new console one day 1? Do you think it could work? If so why do you think no-one is doing it already?

» Go to altaranga's original post
Sign up day one on the contract or buy it outright, either way you are going to be paying more than someone who is willing to wait a couple of years. Is it really that much different? It certainly wouldn't bother me.
Posted 9:32am on Wed 20 February 2013
altaranga
  • Posts: 7,357
00
In response to Topic
We live in interesting times.

It is widely expected that the PS4 will be announced tomorrow. It is widely expected that the NextBox will be announced at E3. And it is widely expected that both will be available by the end of the year (possibly Q1 2014 in Europe).

The has been a lot of chatter about the rumoured prices for these new consoles, most of them ranging from £300 to £500. Now I don't know what is an acceptable price for each of these, some might say something is only worth what you are willing to pay for it. But it did sort of get me thinking...

Every year or so our Californian friends Apple seem to bring out a new iPhone. This is usually preceded by the usual conference thing, a lot of hype and then queues at dawn. One thing that doesn't seem to bother people too much is the price, which is odd considering a bottom of the range iPhone 5 will set you back over £500 (with the top model costing nearly £700).

Only... how many of us would actually buy an iPhone outright? How many of us buy any mobile/cell phone outright? Don't most of us get our new phones via a contract bundle?

What if you could get a new console on contract?

Alright it might not be quite the same thing but just think about it for a second. What if Microsoft or Sony offered a bundle package where you paid them a fixed price per month for so many months and for that you get a console and full access to their online services. For example:

Sony Playstation 4: Option 1
You get a 100GB console (worth £300)
3 Years PSN+ subscription (worth £120)
You pay £10 a month for 3 years.

That's peanuts compared to most phone contracts.

Now obviously these numbers are made up, but to be honest they're not that important. It's the concept of buying a console on some sort of contract over a fixed period of time that I thought might work, and to some might be appealing.

So what do you lot think? Would this sort of thing make you more likely to buy a new console one day 1? Do you think it could work? If so why do you think no-one is doing it already?

» Go to altaranga's original post
But wouldn't this make getting it on Day 1 a lot more affordable for some people? Yes some people might get a cheaper package a couple of years down the line but then it is a couple of years down the line.

A few things worth pointing out, too.

The mobile phone market is a lot more diverse but I think a similar console model would be a lot more diverse than just five options. The iPhone 5 isn't just one option; you have different memory sizes, different contract services and different contract periods. This one option actually turns out to be a dozen or so options. The same could be true of the new NextBox. There could be three models (250GB, 500GB and 1TB). There could be different peripheral options (a 'Bronze' package with just the wires and a controller, a 'Silver' package with the above plus Move, or a 'Gold' package with all of the above plus a second controller and a wireless internet connection). And you could have different repayment periods, potentially making monthly repayments more affordable.

In very simple terms it's like taking out a loan (which is essentially what you are doing with a phone contract, at least in part).

On the plus side from M'Soft, Sony and Nintendo's points of view they would be getting more people buying into their product on Day 1. Would they be making a loss without that influx of immediate payment? Not really. That's what accountants are for. They might actually find they make a profit due to more people buying into it, some choosing the 'Gold' packages from above and all of them using XBox Live.

From our side we have no massive outlay, and although we would be paying every month for it for X years it needn't break the bank.
Posted 10:23am on Wed 20 February 2013
Njeezy
  • Posts: 296
00
In response to altaranga's
But wouldn't this make getting it on Day 1 a lot more affordable for some people? Yes some people might get a cheaper package a couple of years down the line but then it is a couple of years down the line.

A few things worth pointing out, too.

The mobile phone market is a lot more diverse but I think a similar console model would be a lot more diverse than just five options. The iPhone 5 isn't just one option; you have different memory sizes, different contract services and different contract periods. This one option actually turns out to be a dozen or so options. The same could be true of the new NextBox. There could be three models (250GB, 500GB and 1TB). There could be different peripheral options (a 'Bronze' package with just the wires and a controller, a 'Silver' package with the above plus Move, or a 'Gold' package with all of the above plus a second controller and a wireless internet connection). And you could have different repayment periods, potentially making monthly repayments more affordable.

In very simple terms it's like taking out a loan (which is essentially what you are doing with a phone contract, at least in part).

On the plus side from M'Soft, Sony and Nintendo's points of view they would be getting more people buying into their product on Day 1. Would they be making a loss without that influx of immediate payment? Not really. That's what accountants are for. They might actually find they make a profit due to more people buying into it, some choosing the 'Gold' packages from above and all of them using XBox Live.

From our side we have no massive outlay, and although we would be paying every month for it for X years it needn't break the bank.

» Go to altaranga's original post
As you said this would definitely be more of a loan structure than a contract and what would happen after the 3 year contract is up? You already have the console and all they can do is stop you using the online services, it's not like they are a service provider that can just stop you using the phone if you stop paying.

I do think however that if they did let people pay for a console over time there would be a larger group of people willing to get them on release day.
Posted 10:28am on Wed 20 February 2013
Karlius
  • Posts: 9,703
01
In response to Topic
We live in interesting times.

It is widely expected that the PS4 will be announced tomorrow. It is widely expected that the NextBox will be announced at E3. And it is widely expected that both will be available by the end of the year (possibly Q1 2014 in Europe).

The has been a lot of chatter about the rumoured prices for these new consoles, most of them ranging from £300 to £500. Now I don't know what is an acceptable price for each of these, some might say something is only worth what you are willing to pay for it. But it did sort of get me thinking...

Every year or so our Californian friends Apple seem to bring out a new iPhone. This is usually preceded by the usual conference thing, a lot of hype and then queues at dawn. One thing that doesn't seem to bother people too much is the price, which is odd considering a bottom of the range iPhone 5 will set you back over £500 (with the top model costing nearly £700).

Only... how many of us would actually buy an iPhone outright? How many of us buy any mobile/cell phone outright? Don't most of us get our new phones via a contract bundle?

What if you could get a new console on contract?

Alright it might not be quite the same thing but just think about it for a second. What if Microsoft or Sony offered a bundle package where you paid them a fixed price per month for so many months and for that you get a console and full access to their online services. For example:

Sony Playstation 4: Option 1
You get a 100GB console (worth £300)
3 Years PSN+ subscription (worth £120)
You pay £10 a month for 3 years.

That's peanuts compared to most phone contracts.

Now obviously these numbers are made up, but to be honest they're not that important. It's the concept of buying a console on some sort of contract over a fixed period of time that I thought might work, and to some might be appealing.

So what do you lot think? Would this sort of thing make you more likely to buy a new console one day 1? Do you think it could work? If so why do you think no-one is doing it already?

» Go to altaranga's original post
While I like the logic. Your numbers are floored.

Sony Playstation 4: Option 1
You get a 100GB console (worth £300)
3 Years PSN+ subscription (worth £120)
You pay £10 a month for 3 years.

Total product cost £420 you pay £360.

Not likely. Contracts for phones are highly subsidised by contract yes but this is for simple reasons.

New phone cost to Mobile Company £350.
12 Month Contract @ £40pm + £200 for phone.
Total £680

Same 12 Month Contract no phone = £15pm. New Phone £450.
Total = £630 a saving OF £50 to you.

So Now we know costs to you lets work out profit for company.

On the 12 Month Phoneless Contract we can assume the carrier is making at least a 33% profit so the cost of the contract cost to them is £10 per Month.
Total £120 for the year.

To subsidise the phone it cost £150.

The Cost of the Contract with phone was £480

So £480 - (£150 + £120) = £210 Profit

By taking up front costs you always end up better off.

The console contract would look more like this.

Console + 3 Years PSN+ @ £20pm

This is more inline with the offers in the states.

You'd be better off buying on an interest free credit card and switching to another half way through.

It's an interesting way to appeal to more people but not from a financial view point.
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