Microsoft sets Xbox One game prices at £50 in UK

Microsoft already announced first-party Xbox One games will retail for $59.99 in the U.S., and now the U.K. price has been formally confirmed at £49.99.

The U.K. Microsoft Store lists upcoming games such as "Ryse: Son of Rome," "Dead Rising 3" and "Forza Motorsport 5" as all being priced at £49.99. That price shouldn't be too surprising, as it's the same as Xbox 360 game prices in the country. Previous speculation hoped Microsoft would drop prices, however, as U.S. $59.99 converts to less than £39.99 in U.K. currency based on current exchange rates, though the U.K.'s value-added tax is included in prices prior to checkout while sales taxes are added during checkout in the U.S..

Also noteworthy is the fact that Kinect-only games, such as "Kinect Sports Rivals," will share the same price point as regular games in both the U.S. and U.K. Kinect-only games for the Xbox 360 cost less than regular titles – in the U.S., Kinect games for the Xbox 360 cost $49.99 versus the $59.99 price of regular releases. The change is likely due to the fact that Microsoft is pushing developers to make use of the next-generation Kinect that comes bundled with every Xbox One console, blurring the lines between what is a "Kinect game."

Sony has yet to announce prices for PlayStation 4 games, though Jack Tretton, chief executive of Sony's U.S. business, previously said prices would top out at $60 in the U.S. Tretton said prices would range from 99 cents up to that price point.

The Xbox One is scheduled to launch in the U.S. and U.K. sometime in November. In the U.S., the Xbox One will cost $499, while it will cost £429 in the U.K.

Source: Microsoft via The Official Xbox Magazine (U.K.)

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44 Comments

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You don't buy games from game producers(usually). I buy them from distributors. If they were to sell the game for $60, the distributors are the ones buying it at that price so you are actually raising the price for consumers since distributors have to make money too.

Because fans didn't want lower prices for new games. It is a side effect of having physical games that can be sold without the creators getting a dime for it. Had Xbox One stuck with all online and digital, all sales would always give the creators money and would result in a lower price since they would make their money back quicker. Gamers are too short sited for this though and had to cry foul when they couldn't sell their used games. We screwed ourselves over on this one.

ILikeTobacco said,
We screwed ourselves over on this one.

Microsoft is also at fault due to their inability to clearly explain the rationale behind their original policies and plans, as well as the benefits that the latter would've brought. I'm also not sure they had to go from one extreme to the other when they changed their minds; surely there was a middle ground.

ILikeTobacco said,
Had Xbox One stuck with all online and digital, all sales would always give the creators money and would result in a lower price since they would make their money back quicker.

It is naive to think that it would ever have resulted in cheaper games. If anything it would lead to higher prices. You only have to look at existing digital distribution stores to see that.

You mean like steam, which sells new games at a cheaper price before anyone else? You can go on steam and buy a game for $15 that still costs $40+ at a physical store. We have already seen the effect of a fully digital platform. People just keep pretending it doesn't exist.

Manish said,

Microsoft is also at fault due to their inability to clearly explain the rationale behind their original policies and plans, as well as the benefits that the latter would've brought. I'm also not sure they had to go from one extreme to the other when they changed their minds; surely there was a middle ground.
Fully agree.

thealexweb said,
In the age of the steam sale how can they get away with stuff like this

Because most of the big blockbuster games will be the same $60 price on Steam. Yea Steam has sales for games that been out for a while and so does the Xbox games store and PlayStation store.

Doli said,

Because most of the big blockbuster games will be the same $60 price on Steam. Yea Steam has sales for games that been out for a while and so does the Xbox games store and PlayStation store.

Xbox Live and SEN don't have sales anywhere near on the same scale that Steam does though.

ILikeTobacco said,
The difference is that the price drops first on steam long before the price drops at WalMart or GameStop.

BioShock infinite is still $60 on Steam while GameStop, WalMart and Amazon has it listed for $40 for Xbox and PS3.

The Elder Scrolls V: Skyrim Legendary Edition, $60 on steam. Cheaper on amazon for X360 and PS3 but the same on Gamestop and Walmart but i can see them dropping the price before Steam

Edited by Doli, Jul 24 2013, 2:52pm :

You do realize you just compared the price of two different products right? Compare PC prices with PC prices. Right now, Bioshock on PC are both the same. Prices for console games will drop first since they have a larger audience of paying customers. Comparing the price straight across doesn't work because publishing companies handle PC and console games as separate products. Console games, especially those with online components, get a cut from the platform. Obviously the games are exactly the same, but on the books, they are two different products.

Steam games drop in prices because the demand drops quickly. If people stop buying Xbox games the prices will fall more quickly. PC games demand will continue to drop as time goes by.

Brings up the point that demand would have dropped for XBox One games without the ability to sell them used which a large share of the market does. Would have forced a price drop just the same. Either way, we get a price drop.

ILikeTobacco said,
You mean like steam, which sells new games at a cheaper price before anyone else? You can go on steam and buy a game for $15 that still costs $40+ at a physical store. We have already seen the effect of a fully digital platform. People just keep pretending it doesn't exist.

Perhaps, when there is a sale on. Rest of the time, it isn't much different.

ILikeTobacco said,
You mean like steam, which sells new games at a cheaper price before anyone else? You can go on steam and buy a game for $15 that still costs $40+ at a physical store. We have already seen the effect of a fully digital platform. People just keep pretending it doesn't exist.

Just picking four popular games randomly via Amazon:
Call of Duty 4 - Steam £20 / Amazon £14
Medal of Honor Warfighter - Origin £15 / Amazon £7
Total War Rome 2 - Steam £30 / Amazon £30
Company of Heroes 2 - Steam £40 / Amazon £30

ILikeTobacco said,
You do realize you just compared the price of two different products right? Compare PC prices with PC prices. Right now, Bioshock on PC are both the same. Prices for console games will drop first since they have a larger audience of paying customers. Comparing the price straight across doesn't work because publishing companies handle PC and console games as separate products. Console games, especially those with online components, get a cut from the platform. Obviously the games are exactly the same, but on the books, they are two different products.

ILikeTobacco said,
You mean like steam, which sells new games at a cheaper price before anyone else? You can go on steam and buy a game for $15 that still costs $40+ at a physical store.

You were comparing Steam games to console games. But if you want to be digital to digital then yea Bioshock infinite is still $59 on the PlayStation download store so its the same with Steam.
Also BioShock infinite for Steam is cheaper on Green Man Gaming. Green Man seems to bringing better deals for Steam games. They can only make Steam get better than offering TF2 hats.

Yes but as isolated systems. What happens on steam doesn't effect what happens on consoles. The two financial systems are not related. If the consoles were to start operating under the same type of environment, we would see the same results on the console pricing.

Don't forget that Steam has competition from a bunch of other places and that's why they can have lower prices. If PS4/Xbox One were digital only they wouldn't have any competition on their platforms and would have no incentive to lower the prices.

They would though. First of all, if they were dumb enough to attempt to hold the prices higher longer, sales would tank. Secondly, without used sales, you would be killing off a large portion of buyers from the start. People who buy their games with the intention of selling them after they are done so it wouldn't be as expensive on their wallets would no longer buy the games at all. The price would have to drop all the way down to the price of what they normally paid after selling the game which tends to be in the $10-$30 range. Publishers would be forced to lower the price just to make that one very large portion of the market not quit giving them money. In every possible situation, game publishers would make less money having higher priced games which is the inventive of lowering the price. Demand would tank before the game even released.

+1000
total agreement. Everyone complains when DLC appear after the game is release also part of developer strategy. I won't be surprised, when new game released, there will be DLC codes in the box for free. But when the game are traded, a purchase of that DLC will be needed. It's another thing if the DLC is multiplayer, but another if additional level etc.
Sometimes, consumer get screwed when all they think about games cost $60 + DLC (New) is equivalent to paying $54.99 (Gamestop) plus DLC.
Boycott Gamestop people

ILikeTobacco said,
Because fans didn't want lower prices for new games. It is a side effect of having physical games that can be sold without the creators getting a dime for it. Had Xbox One stuck with all online and digital, all sales would always give the creators money and would result in a lower price since they would make their money back quicker. Gamers are too short sited for this though and had to cry foul when they couldn't sell their used games. We screwed ourselves over on this one.

minster11 said,
+1000
total agreement. Everyone complains when DLC appear after the game is release also part of developer strategy. I won't be surprised, when new game released, there will be DLC codes in the box for free. But when the game are traded, a purchase of that DLC will be needed. It's another thing if the DLC is multiplayer, but another if additional level etc.
Sometimes, consumer get screwed when all they think about games cost $60 + DLC (New) is equivalent to paying $54.99 (Gamestop) plus DLC.
Boycott Gamestop people

I don't see all digital being cheaper, they just move from making disc, cases, user manuals, cost of shipping, etc.. to online stores like Microsoft getting their cut (30%?). The best way for them to really control the price is to have their own store but people don't really like that on the PC side (Origin and Uplay) and have fun trying to get that on a Console. AAA digital download games will stay at $60 and I am sure they would like to (but they wont) charge more as the cost for AAA games gets bigger and bigger.

People need to stop expecting used games that are less than a month (maybe two) to be cheaper that $54.99 at Gamestop. You might be better off looking for a less than a month old game on craigslist. "But people get ripped off when they trade in their games?"... They don't have to use Gamestop to sell their games. They don't want to take the time to sell it for a better price and use the easy way then that's their choice.

Those games is priced to 599kr in the Norwegian Microsoft store which is crazy. That converts to £66 and $102. I know we have 25% sales tax here but still.

Edited by CCLebie, Jul 24 2013, 1:49pm :

I assume the "conversion" is by exchange rate? Exchange rate is not a valid way to compare cost in different markets. You also should add US sales tax but that varies by state and locality, so it's hard to do it exactly.

Spicoli said,
I assume the "conversion" is by exchange rate? Exchange rate is not a valid way to compare cost in different markets. You also should add US sales tax but that varies by state and locality, so it's hard to do it exactly.

That is what conversion is based on, yes, but I added "based on current exchange rates" for clarification.

What does this mean...?

"conversion of U.S. $59.99 is less than $39.99 in U.K. currency."

I'm not worried abotu seeing £49.99 for XB1, seeing as (written above) that's just the store RRP for the games and the XB360 is the same for new releases on the store.


lunamonkey said,
What does this mean...?

"conversion of U.S. $59.99 is less than $39.99 in U.K. currency."

I'm not worried abotu seeing £49.99 for XB1, seeing as (written above) that's just the store RRP for the games and the XB360 is the same for new releases on the store.



It means U.S. $59.99 converts to less than £39.99 in the British Pound. I rephrased it and used the U.K. symbol for clarification.

WHAT? we currently pay £40 for games, I know the RRP is £50 but most games at launch are £40. I wonder if digital versions will be cheaper.

Ryan Bowden said,
WHAT? we currently pay £40 for games, I know the RRP is £50 but most games at launch are £40. I wonder if digital versions will be cheaper.

And this is RRP prices, so...

Ryan Bowden said,
WHAT? we currently pay £40 for games, I know the RRP is £50 but most games at launch are £40. I wonder if digital versions will be cheaper.

I wouldn't hold your breath, Microsoft tends to keep the RRP prices for up to 2 years at least on their digital versions I remember Microsoft had a sale on Halo Reach digital version this year for £29.99 whereas my retail copy cost £27 on launch day via Amazon.co.uk. They were still flogging Fable III at £39.99 for PC as well.

The Steam way of doing things where digital tends to cost less than physical is almost completely absent from Microsoft's market place / store.

Before you start yelling, remember, US prices do not include tax (add 6-10% based on location) whereas the Uk prices include them...also the UK pays more tax than the US, so there prices will be higher...in short, put the pitchforks down and blame your government, not Microsoft.

bdsams said,
Before you start yelling, remember, US prices do not include tax (add 6-10% based on location) whereas the Uk prices include them...also the UK pays more tax than the US, so there prices will be higher...in short, put the pitchforks down and blame your government, not Microsoft.

Actually there are parts of the USA that have sales tax as high as 15.5%, not at the state level, but local towns can add a "surtax" on to pay for other things like stadiums... Illinois is the biggest offender of this in some areas

bdsams said,
Before you start yelling, remember, US prices do not include tax (add 6-10% based on location) whereas the Uk prices include them...also the UK pays more tax than the US, so there prices will be higher...in short, put the pitchforks down and blame your government, not Microsoft.

Yeah, I don't expect Sony's pricing to be any different either.

KayMan2K said,
Actually there are parts of the USA that have sales tax as low as 0%. Delaware has no sales tax.

No sales tax at Military Exchanges or for most online orders either.

DeathByPenguin said,
8.875% Damn. In the UK it's 20%..

The VAT is not just a sales tax. It's also intended to replace part of the corporate income tax.

This is part of the reason why corporate income tax rates are higher in the United States than in countries with VATs.

Deihmos said,
What part of the USA has a 15% sales tax? Even in NYC it is is 8.875%.

LOL, you beat me to it. I think we pay the highest sales tax in Chicago which is around 9.75 percent if I am not mistaken.

DeathByPenguin said,
8.875% Damn. In the UK it's 20%..

Varies a lot in Canada too. Some places it's a total of 5% (Alberta) up to 15% (Nova Scotia)

Out of a total of 13 provinces and territories there are 7 different tax rates in use depending on which one you happen to be in.