Mixed views on the high cost of owning an Xbox 720

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Microsoft has yet announce their next generation console, but a recent report from the Verge suggested that the company is readying a casual alternative for those that use their Xbox for things other than gaming. A lower priced alternative that will allow entertainment seekers the ability to access all of the apps and options they’ve come accustomed to with the Xbox 360.

A new report from Gamasutra suggests that the Xbox 720 will be a pricey bit of hardware, if the rumors about the low cost alternative turn out to be true. Their theory suggests that the core gamers on the Xbox 360 will be more accepting of higher console prices, for added power and better games. While Microsoft may turn off some consumers with this higher price tag, namely the casual audience, the second offering will soften this blow.

It’s not a bad theory, but analysts aren’t so sure about a high cost next generation console. There has been plenty of speculation about Microsoft’s plans for its next gen hardware. Will they subsidize the cost by making consumers submit to Xbox Live contracts like mobile phone carriers do? Back in March, industry analyst Doug Creutz predicted that due to market forces, Microsoft wouldn’t be able to demand such a high price for their next console launch.

The truth is, regardless of who is making the speculative statements, articles, or industry analysis, nobody knows at this point. Outside of the halls of Microsoft, where number crunchers and engineers are probably looking to put together the right combination of tech, it’s all speculation until it’s time for an announcement from the company.

Obviously, everyone wants to get the most bang for their buck, but Microsoft faces a very distinct challenge with putting a high price tag on their next console. The Xbox 360 saw the biggest batch of defective consoles to ever launch. The RROD fiasco will definitely factor into the decision making process for these core gamers, who could see a high price tag console as a bit of a risk. While its unlikely we’ll see it again from the company, that it happened in the first place could put some off of such a big investment.

Where would you draw the line in the sand as far as next gen hardware goes from either Microsoft or Sony? Let us know in the comments section below.

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