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E3 2017: Xbox One X Is Too Expensive At $500, Analysts Say

Some see it as a "tough sell."

225 Comments

This week at E3, Microsoft finally announced the name, price, and release date for Project Scorpio. It's called Xbox One X, and the $500 system will launch on November 7. $500 is more than many thought it would be, and now some analysts are saying that price is too high.

GI.biz collected a series of opinions from analysts about the Xbox One X's price point, and many agree that the price could limit the system's ability to have success on a wide level.

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"As expected, the new device's price point is the most obvious weakness, giving Sony an opportunity to drop its current PlayStation 4 Pro to $350 and raise the stakes," SuperData's Joost van Dreunen told the site.

Michael Pachter of Wedbush Securities commented, "I think that the price point is too high. Consoles have historically failed at this price point, and consumers seem unwilling to accept anything over $399. The X will have even more trouble, because the S is at $249 and so is the PS4. A consumer could buy both the S and the PS4 for the cost of an X, so it makes it a tough decision for anyone who is budget conscious or constrained. I think it will resonate well with the wealthy few who buy it, but think it's too expensive."

EEDAR's Sartotri Bernbeck said $500 is "fair" for what's inside the machine (it's the most powerful console ever made), but he also mentioned that it could be a "tough sell."

Other analysts quoted in GI.biz's piece were more positive, including IDC Research's Lewis Ward, who said Xbox One X is "remarkably affordable given its specs." You can read the full story here at GI.biz.

Earlier this year, Xbox boss Phil Spencer said he believes Xbox One X (then known as Project Scorpio) won't sell anywhere near as much as Xbox One S. "The majority of the consoles that we're going to sell are the Xbox One S and I'm very proud of that," he said at the time.

We spoke with Microsoft today about the $500 price point, and the company believes no other console out there is doing what Xbox One X does. For lots more on Xbox One X, check out GameSpot's breakdown of the Xbox One X specs in the video above.

Got a news tip or want to contact us directly? Email news@gamespot.com

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Vodoo

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Edited By Vodoo

I think they should ship it with that $150 Elite controller instead of a regular controller. Then it would be more worth the price to people and be an all around premium experience.

I have no problem with the price. A liquid cooled console? That's frigin awesome!

The only concern I have is that I own a 65 inch 4K tv, but HDR released the year after my tv. So I have 4K, but not HDR.

Also, it says it only supports HDR-10. That's the lowest of HDR formats. Dolby Vision is the best. If you're including Dolby Atmos, the best audio, why not include Dolby Vision HDR?

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Alexander_Mark

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'A consumer could buy both the S and the PS4 for the cost of an X...'

lol yes 'analyst Michael Pachter.' Generally we spend money to upgrade to a new generation. We don't keep buying old consoles.

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Megavideogamer

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$500.00 USA and $600.00 CAN for a Xbox One X Videogame console. Is a good deal for what you get. Yes it is beyond the "magic" price point of $399.99 However Pachter and the gang are correct that the Xbox One X will not sell very quickly at launch. The Xbox One X is meant for the Hardest of the Hardcore videogame Xbox brand players. So 2006 should once again play out. The launch of the Fabled 60Giger PS3 price was $600.00 USD/$650 CAN. But it ended well with at Grand total of 86.5 million

The Xbox One X should stall in the consoles sales race. But since the start of the Xbox brand Microsoft has finally figured out what works when debuting an Xbox console. As long as this Xbox One X does not have any RRoD, or YLOD of consoles past.

The price point is high and the Xbox One X is the current Most powerful video game Console ever created. Thus far... Microsoft can withstand a very slow beginning for Xbox One X. while Sony, $500/$600 Panasonic,$699 SNK,$599/$699 NEC (original console + CD Rom add on) $700 USD/.$1050 CAN, Pioneer $1000 Philips $699/$799.

So the videogame universe history is filled with high price point videogame consoles that debuted at quickly crashed at retail. The only difference is Microsoft can absorb Loss in the Billions of dollars. Other companies cannot are not extinct. So this time the Pachter is correct.

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Adungy

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Edited By Adungy

Xbox One X-the verdict isn't out yet. It'll be out when we see how well games perform on it. If you are going to get 4K at 60fps on all the major third party titles and the company's few worthwhile exclusives-then it will be worth the asking price. But people should know that at $2-300 more, they can build a PC that'll be much more capable. People should also know that Destiny 2 will only run at 30fps on the Xbox One X...

How well the console will run software will be key.

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Anodyn3

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Werent critics of Scorpio shouting there's no way it would cost less than $600-$800?

Regardless, $500 seems VERY reasonable for what they are offering. & the price will inly go down from there... SOLD!!!

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thisistheslam

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I for one am excited about this console. I was very underwhelmed with the XB1 and the PS4 back in 2013. I thought to myself "I'm paying for consoles that truly struggle to offer a quality 1080p product when 1080p is the benchmark that everything measures up against". Finally, I will be able to have that jump to a visual quality that I expected a couple years back. 4K isn't going to make your games so much better but it will make you like what you see more. Go look at Ghost Recon Wildlands and see how much sacrifice is to be had visually compared to the PC version vs. consoles. It's dramatic. Same with Battlefield 1 - both games are gorgeous on PCs with mid-level gaming chops. So why were consoles so far behind? Neither Microsoft nor Sony made a product that lost money on day 1 but became profitable over its first 12-18 months, like both companies did on the PS3/Xbox 360. Those machines had a little future-proofing and over-delivered day 1 and only began to lag in quality in their 6th year and beyond. We saw both XB1 and PS4 lose their edge within that 2 to 3 year mark.

I'll be buying an Xbox One X. I may or may not have the money day one but I won't be left out since I have a One S and can still be a part of the fun. That's a smart play and I think analysts are usually morons shouting loudly hoping they'll be heard and paid attention to. The One X won't be a super-hot seller but it's going to sell and it's going to make Sony's offerings look weaker. The only problem here is that the Xbox brand hasn't had many killer apps yet - the One X and One S/One need a couple blockbuster titles since Halo 5 underachieved and Gears of War 4 was only pretty good, not VERY good. Games, as always, helps sell the great hardware.

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j15reed

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So let me get this right Sony gets a pass for wanting you to buy a new system and a headset VR, but MS gets all this shit for putting out the most powerful console ever at $500?

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Conbot

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Edited By Conbot

@j15reed: Dude, Sony definitely didn't get a pass. People were (and are) saying the same thing about the Pro.

Most people just have to crap all over everything for no reason.

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ohjtbehaaave

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Edited By ohjtbehaaave

Here's the problem with MS. They are pounding their chests and crowing about the $500 Xbox One X and how it's the most powerful console on the planet with all this graphical power... and then you see a FIRST PARTY game like Crackdown 3 with years of development put into it and it looks like a 360 game!! That aline is beyond mind boggling and unacceptable. Not many are spending $500 to play Forza 7 in 4K. The XboxS does a great job with Forza Horizon 3 on a quality 4K tv with HDR. Would like to get an "X" but I'm having a hard time convincing myself it's worth upgrading to it for $500 bucks.

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thisistheslam

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Edited By thisistheslam

@ohjtbehaaave: I'm confused about the last part of your comment: "The XboxS does a great job with Forza Horizon 3 on a quality 4K tv with HDR". It looked just as good on a 1080p set. Forza Horizon 3 is not in 4K so there is ZERO advantage to playing it on a 4K screen. The HDR is nice but I disagreed with some devs that said it was more meaningful than 4K - it's not, but it is nice to compliment 4K. I agree FH3 looks excellent but I'm also in the group that says 4K will probably be the last meaningful leap in technology in terms of resolution before we start seeing the hardware catchup (only vivid VR remains as the big upgrade path for hardware to support), so seeing FH3 in 4K would have been nice. We might with the updates the games are getting.

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deactivated-65d35eb4921a1

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In fact, the X has an Achilles' heel that not much people seem to notice but might jeopardize its future: CPU. Microsoft did some clever tweaks to the silicon but the boost is marginal next to the massive boost in GPU power.

I mean, Microsoft's idea here is clearly to provide enough room for the resolution boost - from 1080p to 4K. But just about. Xbox One X won't do much to enhance CPU bound aspects of gameplay like physics and AI.

And as for performance, early reports suggest that the new CPU will actually prevent many games from jumping to 60 fps, which is worrying.

What I'm trying to say is that the difference in price between the S and the X won't be reflected by what you see on the screen. At least not in the same proportion. And specially for those without a 4K TV.

This is one of the hindrances of a mid-generation refresh, but the price gap here screams generational leap. Which is definitely not the case. A tough sell indeed.

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preacher001

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@gfantini: You need to stop thinking with a Console mindset and start thinking with a PC mindset. There is way more value for the dollar happening at this price point than we typically see as we move up the very steep and expensive upgrade path. Microsoft has always been about trying to get you their equipment at the best dollar they can. Though they like making a profit on hardware they've proven many times over that they don't mind taking the loss. Not that it shouldn't have been clear a long time ago but Phil has said how the console is not where they make their money a few times now.

Do you not realize how big the enthusiast market is and how much money they spend. I'm pretty sure there will be many an Xbox One X console sold to people who set it up for little more than the very temporary pleasure of bragging rights.

The Xbox One X since announcement has been pushed as a premium experience, if all you want is an Xbox One than the X1X is not for you.

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deactivated-65d35eb4921a1

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@preacher001: Dude.. I'm as enthusiast as it gets. I never said the X was not for me. I'd definitely consider getting one if.. And that's exactly where the problem lies: on the "ifs".

… if the CPU were on par with the GPU.

… if the gap in visuals were as dramatic as the gap in price.

… if the gap in performance were as dramatic as the gap in price.

… if I owned a 4K TV.

… if the exclusives were anywhere near as good as Sony's.

… if I couldn't get the same games on Windows.

You see? I wish I could justify getting an X, but I just can't.

I really don't think the X is expensive. Quite the opposite. My concern lies mainly on the unbalance between CPU and GPU power. If only X were based on the Ryzen… it would be a killer product even at $600. It would be for me.

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preacher001

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@gfantini: I appreciate that you're an enthusiast but I still think you're a little off on how much a CPU does in this day and age. I'm running an ancient Amd 720 BE and it has far less effect on my games than it does on streaming 1080P content off Youtube. The CPU will impact the system but the GPU, board and ram can make up for that. The other thing is that devs can optimize for the lower CPU and push the weight onto the GPU as apposed to a PC where they can't make those kind of assumptions.

-CPU doesn't need to be as powerful as the GPU

-the gap visuals are never equal to the gap in price

-the gap in performance is never as dramatic as the gap in price

-lack of 4K TV is on you (clearly you are not the target audience)

-Sony has some great exclusives and I would argue they are slightly better BUT most are single player.

-The equivalent experience on windows requires a $1000 PC (if you have one than you are not necessarily the target audience)

You do realize that this is a highly customized CPU right? It's got some tricks up it's sleeves and I wouldn't throw it under Ryzen so casually. Don't get me wrong I love the new Ryzen CPU's but the X1X's CPU is no slouch.

This is an enthusiast level piece of hardware and is priced surprisingly well for it. That being said if it was the Only Xbox One on the market I would be pissed about the price.

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deactivated-65d35eb4921a1

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@preacher001: Actually, it's the other way around: people believe the GPU will do 99% of the heavy lifting while the CPU will stand still most of the time. When in fact, the CPU can and will present a bottleneck in a number of cases like complex physics.

You're probably aware that Digital Foundry was invited to meet the X's engineering team a few weeks ago, so they could have a pretty deep understanding of the system. Well, it's fair to say that they came out quite impressed, especially with the aforementioned CPU optimizations.

But… there's a number of catches. Some of the more dramatic tweaks, for instance, require the developer to use DirectX. Which poses a similar issue that the PS3 suffered from: it's powerful, but you'll only see it clearly on first party titles. The few of them.

I can't recall exactly where, but DF mentioned specifically the X's CPU as a possible bottleneck when looking for reasons why a particular game couldn't make the jump from 30 to 60 fps. It might have been Destiny 2... Sure, this could be an isolated case. But what if it's not?

Granted, Xbox One X is a very exciting product. I'm just not sure it will blossom. Again, it's got too many ifs…

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preacher001

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@gfantini: So your agreeing with me but making an exception. The thing is I already accounted for that exception and you reinforced it. I know there can be bottlenecks, some that can be bypassed entirely others that can be adjusted within reasonable tolerance. There will however be a few that you can do little for.

Sony's proprietary architecture dilemma with the PS3 isn't in the same realm as what's going on with the X1X. Direct X isn't specific to the console, it's in what must be close to a billion devices on the planet. Obviously DX12 is a little newer but it's still been around for quite a while now. Any optimization that developers use on the X1X can in one form or another be implemented on the PC. I'm sure there is not only a tonne of documentation on how to take advantage of the power of DX12 but also a slew of people that can get the job done.

I would say the that CPU could absolutely bottleneck a game from going to 60FPS. I would be more surprised if they had no way around that. I don't believe every game will run at the best possible graphics in 4K at 60FPS on the X!X but then that's not what it's built for. Yes it was a marker but they would have had to build a $2000 machine to guarantee it. Poor coding is often more of a problem than lack of power. Supreme Commander Forged alliance is half my specs and that bloody game still kills my system. It's desire to run the bulk of the game on one core of my CPU instead of multicore with further balance on the GPU is the cause.

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deactivated-65d35eb4921a1

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@preacher001:

Ok, your reasoning makes sense from a technical standpoint, but not from a market perspective. Think about it: these days, games take years to be made. Huge teams, 60 hour work weeks, and so on. And now, developers have another couple consoles to test, debug, refine…

You assume all devs will spend countless hours optimizing a game for a console that has a relatively small user base (which will be the case for a good while). Do you have an idea of the work it takes to do that kind of optimization?

You see? Turn10 will surely do that. So will a few other Microsoft Studios' houses. And maybe a couple studios with money to spare. And that's about it. Don't be fooled. The majority will unlock X support, do some overall adjustments and simply go with whatever comes out. You know, the publisher wants that game out. Now!

The PS4 Pro is proof of that. Many games will actually take a performance penalty with the increased resolution when compared to the standard PS4. With twice the GPU power. It's poor coding, yes, but don't expect developers/publishers to loose sleep over it. Most of them, at least. It's not worth it, from a business standpoint.

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Vodoo

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@gfantini:

I think the X1X will fly off the shelves at launch. You also forget the average age of a gamer is mid 30's that have a measly $500 to spend to dramatically increase their experience.

Even if you don't have a 4k tv, the X1X will basically upscale (for lack of a better word) 1080p tv's.

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deactivated-65d35eb4921a1

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@Vodoo: Problem here is the word "dramatically". It will make games better, but not to reflect the gap in price when compared to the S. That's my point.

And it won't "upscale". It will actually "downscale". The better word you're looking for is "supersampling". That is, it will render at a higher res and rescale it back to 1080p. It does enhance image quality, but again it's nothing dramatic. In fact, it is very brute force and inefficient. A kind of byproduct to the fact that your TV can't display all the pixels your console is capable of pushing. So basically you're wasting a lot of processing power and then trying to mitigate some of that loss.

And in fact I am a mid 30 and I can tell you I have a LOT of expenses to prioritize. Spending $500 on a console might not mean personal bankruptcy for me, but it is definitely not at the top of my list. And such will be the case with many men and women my age.

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@gfantini: I would argue that the majority of studios are already taking dx12 into account for the PC, laptop and tablet realm let alone for the 30 million Xbox one owners out there. Microsoft has just added DX12 to the chip is all. That kind of on die performance will make a nice impact. To my knowledge as for the rest XOX is basically running things in the standard PC way where as Sony's got Dev's trying to get their custom checkerboard technique up and working efficiently.

Though there is some razzmatazz happening in the hardware I would be surprised if it required much fussing on the software side. You also need to keep in mind Microsoft has had these machine in every major developers hands for at least the last 6 months. There's still plenty of tuning time between now and release. The Dev's are already trying to account for the thousands of potential hardware combinations, something like the XOX is a breath of fresh air by comparison.

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thisistheslam

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@gfantini: I slightly agree with you about the CPU performances not being leaps & bounds better than the stock XB1 CPU. However, Microsoft was never under water with their CPU. They opted for a better CPU than Sony's PS4 with the original XB1, so making modest improvements is still at least somewhat significant.

I thought the hardware showcase was very good. $500 is expensive for a console, but millions like me paid for an XB1 with a Kinect for $500 when I kept saying "I would have rather ditched the Kinect and gotten a more powerful XB1 back in 2013". So, for me, this is exactly what I was aiming for. Also, I know I don't need to upgrade to this right away if I don't have the money. MSFT gets to take the hit financially if it doesn't fly off shelves. Lastly, the PS4 Pro is selling well enough that Sony is okay with making the move it did, and it's a much-less powerful console by comparison, so I'm sure the XB1X will share in some of that success.

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deactivated-65d35eb4921a1

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@thisistheslam:

Maybe MS was not underwater in 2013, but in 2017 the Jaguar based CPUs are many feet below the waterline.

The point I'm trying to make is that there's a worrying gap of performance between the X's CPU and GPU. It's not a balanced system in my opinion. And that will become clear when many games won't display such a massive difference in visuals and performance as the price gap between S and X suggests.

You mentioned the PS4 Pro: it's clearly underpowered next to the X, but it's much more balanced and most importantly, quite cheaper. It think it better represents a mid-gen refresh and therefore is an easier sell.

The X will probably pick up by the time the PS5 (or whatever it is) comes out, but by then the gap in sales between Sony's and Microsoft's systems will be gigantic.

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I think its a fine price point. 499 for a console that is the best, period. I dont know how or why people are complaining about what MS did. They created a console specifically to the complaints everyone had. Now everyone is saying thats not the reason. Come on. I think all the fakestation fans are just pissy bc MS actually made a better console than phony did when they released the PS4 pro. And PS4 is a great console, just not as great as the X1X. If you cant appreciate the engineering marvel that MS has done to create the console, then just stay with PS or Nintendo.

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ohjtbehaaave

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@shinerman77: The real question is.... do you want to spend $500 on the X for it to be your 3rd party game console? Because the MS 1st party stuff outside of the Forza games is hurting badly.

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j15reed

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@ohjtbehaaave: PS4 is a 3rd party gaming console, yall like to tote sales right?

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dragonsama

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$500 is not out of the realm of possibility for most people but, they didn't really sell that you have to have this. Most people don't own a 4K TV so they won't see much by the upgrade. Since all the games are play on a regular Xbox One most people will save their cash until they get a 4K TV first.

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atherworld

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So it all comes down to are the majority of consumers into the specs? If so, it'll sell well. If not, they out priced themselves.

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PSYCHOV3N0M

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"I think it will resonate well with the wealthy few who buy it, but think it's too expensive."

Oh c'mon no need to exaggerate like that. You don't need to be wealthy to afford it. I know lots of gamers out there have wives, kids, rent/mortgage payments, food expenses, bills, etc to pay for. But let's not act like even people who aren't VERY financially flexible can't slowly save up even $10 a week for an entire year plus 4-8 more weeks to be able to afford an X1X.

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Conbot

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@PSYCHOV3N0M: I put in a loan application with the Bank of Microsoft. My credit score should be high enough to secure financing for this new, rich people only Xbox.

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preacher001

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@PSYCHOV3N0M: Wow I didn't realize that if you could buy the most powerful console on the market with 1 minimum wage paycheck in Canada that you're considered wealthy. All this time and nobody told me that I was a baller.

Damnnnn Ima hafta buy me some bling yo.

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Runeweaver

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@PSYCHOV3N0M: At the beginning of a gen that wouldn't be a problem, with this gen only having 2 to 3 years left, its quite alot.

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PSYCHOV3N0M

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@Runeweaver: That's true but keep in mind that the X1X is meant for the hardcore enthusiast who will GLADLY pay $500 with zero hesitation for simply the best console performance. This console isn't meant for the people who bought an Xbox One/S console.

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Strychnine

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"The rent is too D@mn high!"...

And by that I mean the price. I'm no fan boy I'm just a guy with bills to pay and mouths to feed. I'd get an Xbone1X on day one if the price were cheaper, but right now, it's a tough sell for me.

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ohjtbehaaave

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Edited By ohjtbehaaave

@Strychnine: Eat Bologna sandwiches for 2 weeks and get the X console !!

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TrolleyProblem

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@Strychnine: I can appreciate your reasoning.

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Nargg

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They sold quite a few Xbox One's at $500. I'm sure they'll sell plenty of the X variant at this price. They can always lower the price, and likely will at some point. How early that point is should be the real news story, not this click bait.

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j1965

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Doesn't matter to me I got my 500 ready and I'm ready to go Buckwild this November!

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jtrousd

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"$500 is more than many thought it would be, and now some analysts are saying that price is too high."

I'm confused - didn't Gamespot run an article in which most of the contributors said their estimate would be $500? Weren't a lot of people saying $500? Is there some sadness that the leaked ad from that obscure Spanish marketplace said 399 euro?

$500 is totally fair for what you're getting. It's a premium console. Want to wait for a price cut? That's fine. It'll eventually come down. The only thing you're missing is VR and 4K, and I don't think that's such an issue this year (or even next). By the time it is an issue, the price will have fallen. Don't see what all the fuss is about.

Reference: April 7th article, "How Much Should Xbox Project Scorpio Cost? - GameSpot Q&A"

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Nargg

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@jtrousd: Typical Gamespot click bait article...

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chris91090

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That's exactly why Microsoft is labeling this as a "premium" product. Spencer obviously stated he isn't expecting to sell as many One X's as Xbox One S's, and both are designed to be part of the family of Xbox. Some of these analysts are dumb if they can't see that.

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Pax_Augusta

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These "experts" are clearly idiots. $500 for a true 4K console is a steal. Xbox is clearly selling this console at a loss given the hardware. We aren't talking fake 4K like the Pro, and you need to fork over $500+ for an Nvidia gpu just to be capable of 4K gaming.

The problem isn't the price, because that's great. The problem is the lack of quality exclusives. There's no reason to own an Xbox, especially with Play Anywhere. I might trade in my XB1 for the X, but realistically I'm just going to build a 4K gaming PC capable of 60 fps.

The only console one really needs is the PS4, and even Sony is going to bring PS4 games to PS Now on PC soon. This would only really work for those who don't want a gaming PC, but also had enough exclusives to warrant buying the X. Crackdown 3 and Sea of Thieves aren't enough.

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Fenrir_

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Edited By Fenrir_

@pax_augusta: The Pro can run some game at native 4k just like the X will. But the X isn't running third party games at 4k, it's doing the same thing the Pro does. The most games to hit native 4k were first party games, indie games, and early access ones. And the majority of those game weren't graphically intense and already ran well on the original one so they just received a graphics boost.

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ohjtbehaaave

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@pax_augusta: And Crackdown 3 looks like a 360 game graphically.

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