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Rumor: Xbox 720 has two Models $500, and $300 with Subscription, Always Online Connection

The more I hear about the next generation Xbox, or the Xbox 720, the more I think this device is going to fail. New information, from a guy that is usually spot on with Xbox information, provided some interesting news about Microsoft’s newest console. This includes an ‘always online’ connection, and a $500 price tag on the high end model. More details through the link . 

Paul Thurrott of the WhatTheTech Podcast discussed what MS was planning for the next generation Xbox. There will be a $99.99 Xbox 360 model, because the Xbox 720 isn’t reverse compatible. The Xbox 720 is also going to be expensive. Offering two models: Pro model for $499.99 and a subscription based model for $299.99. The subscription model will probably require you to purchase two years of Xbox live at full price. So you can add on $120 to that $299.99 model.

It was also relayed to him that the next Xbox does indeed require an always online internet connection. So yeah…. this console is going to die if that’s the case.

Here is the transcript from Neogaf:

“The next Xbox is code-named Durango. And we have talked for a while about this notion that there might be another version of the Xbox that was just aimed at entertainment—a non-gaming device. That device was code-named ‘Yumo’ and they’re not making it. They may make one in the future, but it’s not happening this year.

“So the new Xbox that comes out this year will just be the Xbox. And I mentioned before they’re also going to sell a new Xbox 360 code-named ‘Stingray’ that will be $99. And you might look at that as two things: backwards compatibility, obviously, suggesting—I don’t actually know this for a fact, but based on the fact that they’re making one—I don’t think that the new Xbox will play 360 games. But that I don’t actually know, that I’m guessing. But, the other one is that, $99, that’s a real coo price. And so we know that the Xbox 360 does Netflix, Hulu Plus, yada yada yada, and you can make the argument that’s kind of a low cost entertainment device, too.

“Durango is going to be expensive [laughs], you know $500, $300 for the subscription, that kind of thing, but you know, Blu-ray, blah blah blah, but the thing that interest me, going back and looking at some of the stuff I got a long time ago, it actually says ‘must be internet-connected to use’ in the notes. And that’s all I have, but it does say that.

[Is that a bad thing?]

“I don’t know because I don’t know what it means. You know, when you look at some of the stories that were coming out this week about, you know, I saw a headline that said something like ‘Next Xbox could be okay without an internet connection for as long as 3 minutes’ or something like that. I don’t even know what that means, so for me, Xbox 360 is almost entirely an online experience. Most of the games I play are multiplayer, where you’re playing against other people online. Or you’re using it as an entertainment device when you’re connected to a service like Netflix or Xbox video, so that is an internet-connected device. In this phrase, it says ‘must be internet-connected to use’, you know, that suggests that you can’t even boot into the UI and play—I don’t know, I don’t know, I don’t have one.

“Originally, they were going to announce this thing in April—April 24—now they’re going to announce it May 21. We know there are events occuring this year where we’re going to learn more about Durango.

[And it’s a fourth quarter release, right?]

“Early November, yeah. E3 is going to occur. BUILD is going to occur in San Francisco in June when they’re going to talk about the developer story because it’s a Windows 8 device. It’s going to have the same, or basically the same, developer tools and developer APIs and all that kind of stuff. So I think there’s a lot information to come, but I look at all this stuff that I’ve seen about Durango and I think, ‘it’s all positive.’ I don’t really see any bad news here at all. Like to me, everything I’ve seen about this is really positive. It’s amazing to me that, based on like no information at all, everyone is like freaking out about everything. Aside from this online thing, by the way, the number one question I’ve gotten from people is, ‘What does it look like?’ Who gives a shit what it looks like?

“I’ve actually heard from, by the way not one or two people, several people who’ve said, ‘based on what I’ve seen, Sony is going to blow them away.’ Based on what you’ve seen? You’ve seen nothing. What are you talking about? No, but you’ve seen literally nothing from Microsoft.

[I don’t think that’s even a possibility considering how many people use Xbox LIVE… You’re not going to have this mass Xbox audience jumping to Sony.]

“The problem Microsoft has has nothing to do with Sony or Nintendo anymore, it’s Roku and AppleTV. The market for hardcore video games, the market of people will always buy the next Gears of War game, the next Halo game, the next Call of Duty game, it’s fairly finite. It’s a decent market, yada yada yada, it’s not the market for tablets, it’s not the market for smartphones.

So MS isn’t even concerned about core games anymore. They’re looking at a bigger picture. They are trying to capture the casual Apple TV crowd and what not. I can honestly say, without a doubt, I’m not purchasing the Xbox 720. I don’t think MS cares about gamers anymore. MS is getting really greedy. Oh well, any of you guys planning to buy the Xbox TV Tuner this fall?

Thanks RicardJulianti for the tip!

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  • koopzilla

    If I was going to buy one (which I absolutely am not), I don't see the point in buying the $500 one. With the $300 model you have to do a 2 year subscription contract, but if you have to have it to even play, you are going to be forced to subscribe even if you buy the $500 model right? Also, another thing to add to my large and growing list of reasons not to buy this thing is "it’s a Windows 8 device". I tried Windows 8 and I hate it. Anything that has anything to do with Windows 8, I will avoid. My computer died on me and I had to get a new one a few months ago and was forced to buy a refurbished one to avoid being stuck with Windows 8.

  • Fox

    This terrible news. Its like Microsoft is slowy turning the Xbox into a non-videogame machine. It's sad. the Xbox brand had a lot of potential. I wasn't going to buy the next Xbox anyways, I am happy with my Wii U and 3DS right now. But I just feel so bad for all the Xbox fans out there. The ones that really love microsofts games like Halo and Gears. They are the ones that are getting screwed over.

    But again, nothing is confirmed. Let see what happens down the road.

  • Justin

    I love your work, and usually agree with you but I have to be rude now. There (location) They're (they are) Their (thing that they own)

    • Furious Francis

      Sorry, sometimes I'm trying to get stories up so fast, I don't mind my grammar. I'll try to be better about it in the future.

  • RicardJulianti

    Shout out…woo! Haha

    I don't think I would be buying the neXtBox even if it didn't require an internet connection to function. MS has been slowly increasing the price of Live so I wouldn't be shocked if it was $70 or even $80 considering what all they are trying to do. They also don't really have any exclusive franchises that interest me anymore.

    I get bored with Halo more quickly with each iteration, I was over Gears after I finished 2, Forza isn't my thing, Mass Effect went multiplat and 3 had more problems than just the ending, Fable….*sigh*, Alan Wake was just okay. I haven't even turned on my 360 in 2 months to play games. I tested the game-to-dashboard time to compare loading times and I tried to download the NFS:MW demo to compare demo to demo, but it was removed and there isn't one on Wii U.

    He is absolutely incorrect in assuming people won't jump ship to Sony simply because they have XBL. Paying for online multiplayer has become a fairly big issue and since Sony and Nintendo both offer it for free, why bother paying for it? Especially since most of the games offering multiplayer will be on other platforms. I still maintain that developers will try and bring their titles to Wii U, there isn't anything that would require them to have a completely separate dev team like they did for the Wii. Simply scale back the textures to 720p and reduce the particle effects and so on. They don't even have to make great use of the gamepad if they don't want to, but I digress.

    The Xbox has always been MS's trojan horse into the living room. They knew by appealing to third parties they could steal market share away in order to bring more MS products into people's homes. I've previously mentioned (I don't know if on here, but still) that MS seems to be trying to pull a "Blue Ocean" type thing. Instead of targeting people that have had a passing interest in games like Nintendo did, they are going for the people that do not play games. People that want instant streaming of everything, the people that buy SMART TV's and actually use all of the functions, that already own things like the Roku.

    Problem is, that market isn't nearly as dedicated as gamers and the price point will drive some of them away. Why buy a $300 box that requires a subscription to access everything and can only play games while connected to the internet? If you bought all 4 types of Roku, you wouldn't be able to play games….but it would only cost you $286 and wouldn't require a subscription.