Xbox 2 Updates-The Price factor

With Project Scorpio aka the Xbox 2 set to be unveiled on June 11, a lot of consumer and tech/gaming enthusiasts have been asking one very pertinent question: how much will the Xbox 2 cost? While we know for the new Xbox 2 will be enormously powerful, the price also has to be considered before making an informed purchase.The Xbox 2 is said to be capable of running 4K-native games besides supporting virtual reality experiences. It will also introduce six teraflops of computing power. Let us analyse the price of the new Xbox 2



First, precedents. The original Xbox came for $299, a princely term, pun intended. The console was released in November 2001. The next generation Xbox 360, released in 2005, came for between $299 and $399, an increase by $100. The Xbox One came for $499 and was released in 2013. The Xbox One S released late last year and came for $399. The pricing of the gaming console is hardly consistent. Hence we believe that the Xbox 2 will come in the price band of $499 and $599, not a very cheap sum. Let us analyze this conclusion briefly below.

One, VR technology is coming to gaming consoles. VR technology is the future. Two, the Xbox 2 will have to compete with the Sony PlayStation 5 or the PS5. Three, the Xbox Two may opt for a cloud-based system, to prevent price escalation. Four, the PS5 may well have been pushed back to 2019 due to supply chain bottlenecks and other technical difficulties.

A word on the first point here. The Oculus Rift and the HTC Vive are the two major VR gaming headset manufacturers in the world. The VR headset device will become very useful in the long run. Microsoft’s own VR headset, HoloLens, has also been delayed indefinitely, much to the discomfort of the Redmond-based giant. The Xbox One was priced higher, remember, due to the Kinect technology. Since it seems that Microsoft will have to pair up with either of the two VR manufacturers, they must match up with the PS5, which will have its own native VR experience with the PlayStation VR already extant. If Microsoft decides to team up with the Oculus Rift, the price of the Xbox 2 will increase for obvious reasons.

Point two- competition. The PS5 is giving keen competition to the Xbox gaming console. The PS5 is set to come for between $399 and $499 and release earlier too. To stay relevant, Microsoft will have to kep a tight leash on the price. Phil Spencer, the Xbox boss at Microsoft, was quoted as stating that the new device would be four and a half times more powerful than Xbox One while speaking at the Electronic Entertainment Expo (E3) in June last year. The Xbox 2 will be a part of the Xbox family and will feature backwards-compatibility. If we include the spectre of inflation and wish away any delay in production, we expect the Xbox 2 or Project Scorpion to come for between $499 and $599. We can expect some premium versions to follow the grand launch.

Finally, the cloud-based nature of the Xbox 2. Physical storage restrictions are gone as the game is played using the Cloud platform. The cloud is a remote location where servers can store data or run games. Games can be streamed directly to devices thereby eliminating the need of extra physical devices. We are hoping that if the receiver is removed, the price of the Xbox 2 will decrease sharply. This in itself will be precipitated by the lessening of the manufacturing costs involved.


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