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Xbox One is $500 Because It’s a First-Class Experience, Says Microsoft

October 25, 2013 by Josiah Renaudin

It’s the suite of options that the Xbox One offers that makes it more expensive.

Just what about the Xbox One makes it worth $100 more than the upcoming PlayStation 4? Both pieces of hardware seem comparable when you compare individual specs, and it’s very likely that third-party software will look the same across platforms. From a distance, it seems like little more than Microsoft’s Kinect that’s slapping that extra dough on the price tag – and you don’t even need the thing to use the Xbox One anymore.

However, Microsoft chief financial officer Amy Hood believes it’s the full suite of features on the next-generation hardware that makes it well worth the $500. She explained the thought process behind the decision during a conference call following its quarterly financial report (via Gamesbeat).

“With Xbox One, we [made] a decision to really enable a first-class experience out of the box,” Hood said. “There’s Kinect, there’s a headset, and there’s the console [all included] — and depending on where you are around the globe, there may be a game as part of the bundle.”

That game would be FIFA 14 in Europe, which would add even greater value to the overall bundle. Other than playing games, though, Microsoft wants fans to know that the Xbox One is a much greater multimedia device.

“I’m excited about the increased opportunity Xbox One enables us to attach more and different services beyond what we’ve thought of as a simple gaming platform,” she said.

It’ll be interesting to see just how much of a difference the price will make this November, when both the Xbox One and PS4 launch at all major retailers. 

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