UK Phone Carrier O2 Offering Xbox One and PS4 Contract Plans
Is this business model the future for console hardware?
European phone carrier O2 has started selling Xbox One and PS4s using a contract model similar to those used when purchasing smartphones in the UK. The Xbox One plan, which is available today, will get you an Xbox One for £99.99, with a two-year contract at £52 per month. In the US, that would be about $164 down, and $85 per month. All told, customers will end up paying roughly £1348 ($2205 USD) when the contract has been fulfilled.
Unlike the phone plans we might be used to the console, the console contract comes bundled with games and a Windows Phone, which sort of explains the high price tag. In addition to the console, the contract comes with FIFA 14, a 12-month Xbox Live Gold membership and a Nokia Lumia 1020. O2 sells the Lumia 1020 for £620.00 without a contract.
O2 unveiled a similar bundle-plan for the PS4 last week [http://www.mcvuk.com/news/read/o2-to-sell-ps4s-on-contract-65-stores-have-launch-day-stock/0125001]. Unlike the Xbox One, the PS4 has two payment plans: Customers can either pay £89.99 upfront and £52.99 per month, or put down £129.99 and pay £46.99 per month. Both plans includes a PS4, a Sony Experia Z1 smartphone, Killzone: Shadow Fall and 12-month subscription to PlayStation Plus.
Microsoft has experimented with selling consoles on contract in the US [http://www.escapistmagazine.com/news/view/117046-Microsoft-to-Offer-99-Xbox-with-Kinect-and-Monthly-Fee] in 2012, offering a Xbox 360 console with Xbox Live Gold for $99 down and $15 per month for two years. At the time, the offer prompted a surge of speculation and rumor-mongering over whether the console we now know as Xbox One would follow that model.
Source; MCV UK [http://www.mcvuk.com/news/read/o2-is-now-offering-xbox-one-on-contract/0125300]
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European phone carrier O2 has started selling Xbox One and PS4s using a contract model similar to those used when purchasing smartphones in the UK. The Xbox One plan, which is available today, will get you an Xbox One for £99.99, with a two-year contract at £52 per month. In the US, that would be about $164 down, and $85 per month. All told, customers will end up paying roughly £1348 ($2205 USD) when the contract has been fulfilled.
Unlike the phone plans we might be used to the console, the console contract comes bundled with games and a Windows Phone, which sort of explains the high price tag. In addition to the console, the contract comes with FIFA 14, a 12-month Xbox Live Gold membership and a Nokia Lumia 1020. O2 sells the Lumia 1020 for £620.00 without a contract.
O2 unveiled a similar bundle-plan for the PS4 last week [http://www.mcvuk.com/news/read/o2-to-sell-ps4s-on-contract-65-stores-have-launch-day-stock/0125001]. Unlike the Xbox One, the PS4 has two payment plans: Customers can either pay £89.99 upfront and £52.99 per month, or put down £129.99 and pay £46.99 per month. Both plans includes a PS4, a Sony Experia Z1 smartphone, Killzone: Shadow Fall and 12-month subscription to PlayStation Plus.
Microsoft has experimented with selling consoles on contract in the US [http://www.escapistmagazine.com/news/view/117046-Microsoft-to-Offer-99-Xbox-with-Kinect-and-Monthly-Fee] in 2012, offering a Xbox 360 console with Xbox Live Gold for $99 down and $15 per month for two years. At the time, the offer prompted a surge of speculation and rumor-mongering over whether the console we now know as Xbox One would follow that model.
Source; MCV UK [http://www.mcvuk.com/news/read/o2-is-now-offering-xbox-one-on-contract/0125300]
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