Microsoft has defended the Xbox One's $499 price point, saying that the experience that the console offers amounts to thousands of dollars worth of value.
Xbox division boss Don Mattrick said in an interview with Bloomberg
that the announced price - £429 in the UK - is actually a "lower number than some analysts had forecasted," and that Microsoft is "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," he said. "We're really making the living room your center of fun for your family."
Sony will be launching the PlayStation 4 this holiday season at a price of $399/£349, a vast undercutting of the Xbox One. But Mattrick believes that his company's suite of software solutions, TV integration and bundled Kinect (a camera peripheral that Sony does not include in its PS4 box) will eventually help the console win out.