Mattrick: Microsoft is ‘Over-Delivering Value’ With the Xbox One

Don Mattrick, the president on Microsoft's interactive entertainment business, has defended the company's decision to charge $499 for the Xbox One saying "we're over-delivering value".

Speaking to Bloomberg TV Mattrick commented "It's a lower number than some analysts had forecasted. We're over-delivering value against other choices I think consumers can get. Any modern product these days you look at it [and] $499 isn't a ridiculous price point. We're delivering thousands of dollars of value to people, so I think they're going to love it when they use it.

"We're really making the living room your center of fun for your family," he added. 

Sony has announced it will undercut the Xbox One with the PS4 charging $399 for their console. Part of the saving comes from the fact that the PlayStation Eye is an optional extra while a Kinect sensor in bundled with the Xbox One; the PS4 is also more powerful than the Xbox One.

Both the PS4 and the Xbox One are set to be released later this year. Sony has raised its sales projections for their console following the response to the company's E3 media briefing and some analysts are also set to increase their forecasts for PS4 while lowering their projections for Xbox One.

Microsoft's Yusuf Mehdi has said "in the long run, our console will win" but he's also claimed that next-gen consoles could sell a billion units so perhaps it's not too wise to believe his predictions. 

This isn't the only recent interview Mattrick's had which is likely to raise some eyebrows; last week he advised those without a stable internet connection – required for Xbox One as the system needs to connect once every 24 hours – to get "an Xbox 360". 

Given Microsoft's goal of winning over the mass market with their range of entertainment services do you think they should stick to the $499 price point?