Project Natal price to launch with room to drop

by James Ransom-Wiley { Oct 7th 2009 at 11:03AM }

Speaking at the First Annual Microsoft Open House in Manhattan yesterday, E&D Division prez Robbie Bach danced around the issue of pricing the company's upcoming motion tech for Xbox 360. "Relative to Natal, we'll see how the pricing/costs work out," Bach said. "But I think people should expect it to be like other things: We work through the price curve, just like we have with other products."

Though muddled, Bach's comment does not suggest that Natal will hit retail costing an arm and a leg (geddit?), but rather the device's launch price will be set high enough for significant discounts to go into effect over time. Using Wii as the bad example, Bach emphasized that Nintendo's launch price and its new discounted price aren't notably different. "When you start at $249, I don't know that a [price drop to] $199 -- I don't know how much difference that's going to make in the marketplace," Bach observed. "We'll see."

Tags: first-annual-microsoft-open-house, microsoft, pricing, project-natal, robbie-bach

Reader Comments (Page 1 of 2)

twinkregister @ Oct 7th 2009 11:07AM

*Cross my heart* Hoping that it won't get too pricey.

eNrique @ Oct 7th 2009 1:11PM

Do you know it's microsoft what we are talking about?

Chibi Chaingun - blackhivemedia.com @ Oct 7th 2009 2:10PM

Yes, eNrique, Microsoft; the company that had a long run of the cheapest priced console on the market.

eNrique @ Oct 7th 2009 2:28PM

Cheapest?
Just add $100 for wi-fi and another $50 per year / person.
Ohh and don't forget your hd dvd add on!
and your hard drive!
and your rechargeable kit!

And save some more for replacements (for both consoles anf scratched dvd's).

Yeahhhhh, definitely the cheapest.

Vcize @ Oct 7th 2009 2:33PM

Call my crazy, but I think you'll be able to skip buying the wi-fi add-on for your Project Natal.

That is, if you even prefer gaming over wi-fi in the first place.

Chibi Chaingun - blackhivemedia.com @ Oct 7th 2009 2:35PM

You don't need any of that to play games.

Spartan_458 @ Oct 7th 2009 2:42PM

Oh, the flawed "360 is more expensive" argument.

Guess what? Not everyone needs a wi-fi adapter, hd dvd drive, and controller recharge kit. Xbox Live is also optional. I know some people who would just buy the 360 Arcade and nothing else. And if you buy the $299 version, the hard drive concern goes away.

I don't need a Wi-fi adapter or HD DVD drive. I buy Live because it's cheap and it's the best online gaming there is.

Chibi Chaingun - blackhivemedia.com @ Oct 7th 2009 2:52PM

Ironically, I never play online "for free" on my PS3, but always play online games on the 360. The PS3 is a great value now at $299 (I got mine when it was $400), but it is still $100 more of an entry price making it that much more money to even play games at all on the console. I'm not saying its a bad value, but it is the most expensive console on the market while the 360 is/was the cheapest (now the Wii as well) for games of the same quality.

PR0F3TA (PSN - PROPHETA) @ Oct 7th 2009 4:18PM

"the flawed "360 is more expensive" argument."

WTF? since when was it flawed?!... RIGHT NOW, for the same price you get alot out of a PS3 then you do with a 360. No matter what way you spin it.

you are correct. I don't need bluray, wifi or a huge HDD. But i have it, and its a FREE CHOICE to me, the consumer, not to mention how big Bluray has helped make games even bigger and better.

the only flawed argument is the 360 fanboys who still try to defend something that everyone else gets for free... and i do mean EVERYONE.

Natal is going to be $150 at least

David @ Oct 7th 2009 11:07AM

so in other words it's going to cost $300 for the thing itself, but it'll only read your arms. you'll have to pay $100 more if you want your legs in the mix.

i love your console, but i'm so tired of your bull, microsoft.

Matt @ Oct 7th 2009 11:07AM

I'm sure if they put it $150 with a few bundled games it will sell well. Anything above that and I know I would wait for a price drop.

twinkregister @ Oct 7th 2009 11:09AM

Same here, but I'm always waiting on price drops when it comes to significant buys. Including Natal.

Troy Powers (PSN: TroyPowers) @ Oct 7th 2009 11:48AM

I dunno, man. I don't think many people will be willing to fork over 150 bucks unless this thing has some completely awesome games.

Looking back at the games I've really enjoyed in the last year or so (Batman, Killzone, Midnight Club) or games I'm looking forward to (Uncharted 2, Tekken 6, God of War), I don't see how any of these TYPES of games (Yes, I realize some of these are PS exclusives, so won't see project natal, which is why I said "types" of games) could benefit much from Natal. And if Natal just ends up a peripheral that let's you play a bunch of mini-games (like eye-toy and PS-eye) I can't see spending $150 on it. They're going to have to come out with some really revolutionary software.

MaxPower @ Oct 7th 2009 11:58AM

I think this is going to be the sweet spot. Much more than $150 and it is too close in price to the Wii. They won't price it much cheaper since people will still buy it at $150 and they can recoup some development cost, and in a few months we'll see it at $120 or so and maybe below $100 for the holiday crowd.

Although given the massive balls they have to charge as much as they do for a repackaged harddrive maybe Natal could go over $150.

Anyways I'll not only be waiting on the price drop, but the games as well. I already have Wii so I'm going to need to see more than tacked on gimmicks and party games.

Matt @ Oct 7th 2009 12:06PM

Chris made a good point in one of the last podcasts when he said the potential for it's uses along with the controller can be very cool. I really can't see my self getting it unless the games made for it are amazing / innovative.

The success of Natal rests on the developers and this will either be a huge product for Microsoft or another peripheral taking up space in a bargin bin.

Pip @ Oct 7th 2009 12:07PM

Anything over $50 and it'll flop. There is NO WAY anyone will be buying a device that didn't come with a system to begin with. Only select games will use it. It might even be a huge waste of money even at $50.

Maybe $30 if I'm feeling generous. There are too many good games out there already, and I wouldn't want to miss buying a single one for a goofy ass motion device.

Duke @ Oct 7th 2009 12:57PM

Pip I really think you are wrong with that price point. People bought wii fit and rock band for their peripherals at a lot more money than you are willing to pay . So an add-on that will have uses than those won't flop because of being over $30 or $50. I think they have a bit more room than that.

Mr Khan @ Oct 7th 2009 1:33PM

You have to think in terms of how much it'll cost as a bundle with the system itself, though. I don't think Microsoft's aim in this endeavor is so much to cater to the existing base.

Vcize @ Oct 7th 2009 2:36PM

People spend a lot more than $150 on a couple dates.

Now imagine how many chicks you would get by them seeing you navigate the 360 dash like you were in the fucking future or something.

Chicks dig guys from the future.

nightmare452 @ Oct 7th 2009 11:08AM

Bet its $100-150 easy. No buy unless its below $50 and it suport a ton of games, since its a peripheral I don't need.

incubeezer @ Oct 7th 2009 11:15AM

Until they have a game where it's a must-have, totally "game-changing" experience, I don't think I'll consider it.

I am not all that excited about it, I think it will take you out of the experience of the game if it doesn't work perfectly.

Anthology @ Oct 7th 2009 11:56AM

"No buy unless its below $50 and it suport a ton of games."

No buy unless it's below the average cost of a new game this generation?
Because you don't need it?
You don't particularly NEED a console either, why don't they price drop that for you?

Perhaps I should have been as passive aggressive as you when I bought my second car.

Pip @ Oct 7th 2009 12:09PM

It's a piece of hardware that was an after-thought for the system. Pricing it cheaper than a standard game is the only way anyone will even bother. Games are too freaking expensive as it is.

mynk @ Oct 7th 2009 5:27PM

wonder what that line would be like if applied to a mac.

no one buy unless under 500 and supports tons of games

Tom Kalinske, CEO. (tomkalinske.blogspot.com) @ Oct 7th 2009 11:10AM

Allow me to cut through the PR bull (I have experience).

Natal is going to be over 100 dollars, probably closer to 150. I guess gamers should be happy, seeing as this is relatively low for add-ons to consoles.

And this 'fifty dollars isn't a price drop' business is crap. If Microsoft cut the price of the Arcade to 150 they'd see a substantial rise in sales. Nintendo will see the same thing.

David @ Oct 7th 2009 11:14AM

to be honest i think they'll see more sales due to the price drop also happening with a "new" wii fit. the price drop alone i don't think will do much, the consumer market is already so saturated with wiis that this will have nowhere near the impact it could have had a year ago. plus i think people are starting to catch on that 80% of wiis just gather dust after you've played it a few times.

Duke @ Oct 7th 2009 12:16PM

The wii fit model actually might give guidance here. That device is pretty uninteresting on its own, yet the game is a huge seller at a near $100 price point. I bet Natal will be somewhere around $120 and will be driven by the same kind of purchaser who bought wii fit. At $120 with a decent game it would be something I would consider getting.

Mr Khan @ Oct 7th 2009 1:38PM

The key there is having the necessary software to move it. Microsoft could win big or fail hard on that front, i think. That's why i wish they were less secretive about it, so that we could get a better idea of the device's imminent success or failure.

Rhamsey @ Oct 7th 2009 11:16AM

I love my 360, but god is MS going to fuck us in the ass with natal. Just like the wireless routers and even selling faceplates for like 10 bucks. Still it will probably be bundled with a consoles which will lower the price if you dont have a 360 yet.

Mike @ Oct 7th 2009 1:42PM

True, but natal has something going for that a wireless adapter does not. Market acceptance, MS is greedy, not stupid. They themselves claim the future of this generations console may rely on the shoulders of Natal. In that light, they wont price this thing into the stratosphere. They will price it at a point to where it looks premium but isnt out of reach for the vast majority of gamers.

Guess it doesnt matter though, we all know no matter how many of you complain about it being priced high everyone will still buy it because its going to be fun. Yeah noooobody will pay 150$ for a peripheral *cough cough* Rockband.....

Vcize @ Oct 7th 2009 2:39PM

Mike, they claimed that digital downloads was the way of the future and then priced their hard drives at $150, so that puts a pretty big damper on your argument.

This thing will cost $150, at least.

jason w @ Oct 7th 2009 11:18AM

There is no way in hell im going to pay $150.00 for this thing. Hell my Zune HD wasnt much more than that. If it is under $100.00 then we will look at it. If it is $80.00 or below most likely day one for me. I already have a PS3 and a Wii. I would love to play with Natal but no way in breaking $100.00 for it.

TheCoats @ Oct 7th 2009 11:20AM

....And then 3 years later remove the cameras and call it Natal GO and sell it for the launch cost....seems to be working well for other companies.....

dark_inchworm (stronger than never, ever before) @ Oct 7th 2009 11:50AM

You were just looking for an excuse to say "GO!!!"... weren't you?

GiggMan @ Oct 7th 2009 12:37PM

That comment made absolutely no sense and is definitely in the running for the dumbest thing I have read all day award.

It's still early though....

Tom Kalinske, CEO. (tomkalinske.blogspot.com) @ Oct 7th 2009 11:22AM

I would imagine Microsoft would have to consider Sony's price point for the PMC/PSEye bundle. It could be why they haven't announced anything concrete (that and the time left until launch).

Mr Khan @ Oct 7th 2009 1:39PM

With the competing motion schemes as different as they are, i doubt any of the companies are really going to take the others' pricing into consideration. The products are different enough that the different prices will probably be irrelevant.

Chibi Chaingun - blackhivemedia.com @ Oct 7th 2009 2:23PM

I think regardless of the tech, they will deeply consider the price of the competitors since even us gamers are grouping everyone's product as "motion controls" of some sort. The general public will do the same, but probably barely know the difference between them. So, pricing of the competitors is important.

sleepydumbdude @ Oct 7th 2009 11:25AM

I was thinking it would be at least 130 probably more. Anyways no way I am buying this without trying it and being wowed. I doubt that will happen though.

Mike @ Oct 7th 2009 11:27AM

Natal is a very exciting piece of tech. I look forward to seeing what developers do with it as time goes on. That being said, I was really expecting the price to launch under $100 - put the hardware in peoples hands so they'll buy the software. When Natal launches, there just won't be a lot of games supporting it making a high price point unsustainable - after all, it's only an accessory, not a new console. That would be like launching the vision cam at $100 - hell, that thing didn't do so well when launched at a reasonable price.

Duke @ Oct 7th 2009 12:54PM

I think this device is set to do quite a bit more than the vision cam. I wouldn't use that as the marker for how Natal will pass or fail.

Mike @ Oct 7th 2009 1:18PM

not really trying to use it as a direct comparison, but rather a conceptual one. Had the vision cam arrived at an unsustainable price, no one would have bought it (hardly anyone did anyway). If Natal arrives at an unsustainable price, and without a lot of software support, it too will fall flat, despite it's potential for greatness.

GiggMan @ Oct 7th 2009 11:28AM

Man this shit going to be high as hell.

Although right now they couldn't give it to me for free until I see some decent (non embarrassing or pointless) game play.

Robert @ Oct 7th 2009 7:39PM

Yeah shuttling back and forth, while raising my arms up and down doesn't exactly equate to fun haha what a funny video tho!!!

deaftly (PSN,LIVE,STEAM) @ Oct 7th 2009 11:38AM

$80 with a game. same shit as that horrid eye of judgement bundle.

vidGuy @ Oct 7th 2009 11:41AM

If the thing hurdles the $99.99 mark, I don't expect it to have a very good attach rate.

uncle jesse @ Oct 7th 2009 11:43AM

In other words, it will be expensive when it first comes out, but if you wait a bit they will reduce the price to something more appealing.

juanotejano @ Oct 7th 2009 11:44AM

I really don't see this launching for less than $170. Think about how MS marks up their accessories, but on the other hand with their current accessories there are more trying to make a healthy profit with each sale rather than sell alot of them which they will want to do with this.