Analyst: Xbox One Minus Blu-ray Would Be 'Dumb'

30 Jan, 2014 By: Chris Tribbey

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A rumor that Microsoft is planning to release an Xbox One console with no Blu-ray Disc drive — including 1TB of storage instead — had one analyst saying: “It is one of the dumbest ideas of all time.”

“It would alienate GameStop and other retailers, and it would demonstrate that Microsoft can afford to release a 1TB Xbox One at $399 with essentially the same production cost as the $499 model with a 500GB HDD and a Blu-ray drive,” Michael Pachter, analyst with Wedbush Securities, wrote in a note to investors. “That would likely cause gamers to believe that the model with a Blu-ray drive is overpriced, or would cause them to believe that Microsoft is greedy.

“I have three words for this idea — dumb, dumb, dumb.”

He doesn’t believe the rumor — which popped up via The Verge Web site Jan. 29 — is true, saying the cost of such a large hard drive would cost Microsoft as much as it would save eliminating the Blu-ray drive, and the company would be leaving money on the table with no physical game sales at retailers.

“Although a $399 Xbox One would make the console price competitive with the [PlayStation 4], we are skeptical that the new model would be popular,” Pachter wrote. “In our view, of the two $399 options, the PS4 would be the more popular, as it would include a disc drive, giving the purchaser the option of trading in or selling his games when he chooses.

“In addition, a disc-less box prevents the gamer from playing the disc-based games he has already purchased, limits portability, and decreases his ability to use his PowerUp Rewards credits.”

The Verge post said Microsoft will release a white version of the Xbox One in October.
 

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