17Jul 2012

Microsoft: $99 Xbox 360 is an experiment, may come to Europe

"We just want to be where our consumers want us to be"

That portentous $99 Xbox 360 offer may travel across the Atlantic, Microsoft Europe's vice president of Interactive Entertainment Business Chris Lewis has suggested, as part of on-going experimentation with price tags which could eventually give rise to a subscription-based Xbox 720.

"We'll watch it with interest, then we'll decide if it makes sense for us to expand more fully in North America, globally or by region," Lewis told VG247 in LA last month, adding: "it'll be very interesting to see how it works out. We listen to what the consumers are asking for and we experiment with different propositions in different markets.

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"There are certain things we've done in Europe over the years, for example; a lot of our soft and hard bundling initiatives have ended up becoming global initiatives based on consumption patterns. The one you describe there, we'll similarly track that and see how that goes down. I think it'll be very popular."

Microsoft embarked on a limited trial run of $99 Xbox 360 consoles in May. The deal includes a Kinect sensor and 4GB hard drive, and is backed by a $15/month mandatory Xbox Live subscription.

The manufacturer is keeping cards fairly close to chest over the idea's future, though MGS corporate vice-president Phil Spencer has commented that such schemes "should be part of our model". Deferred pricing would allow Microsoft to 'lock' customers into payment models, guaranteeing revenue in advance and enabling more room for manoeuvre at the outset of next gen.

"We just want to be where our consumers want us to be," Lewis continued. "We want to be able to offer that flexibility of choice, making that kind of proposition available to those that want to consume that way.

"There are others that may choose to do it differently, and want to go down the more traditional method. I think the key it to have that portfolio of offerings."

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