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February 21, 2014 In Uncategorized

Xbox One Layaway Program Is a Big Deal

I don’t think it can be overstated how much the $100 price difference is contributing to The PlayStation 4’s dominance over the Xbox One in sales so far.

Keep in mind, most parents who are buying this console for their kids are not paying attention to the major game news sites. They could give a crap that Sony has done a better job of courting indie developers, or that Microsoft flip-flopped with their online strategy. That stuff we care about, but most consumers don’t even know about. In fact, you would be amazed at what most consumers don’t know.

One example: I was in a GameStop the other day, and a father and son were in line behind me. The father was asking his son what the difference was between the PlayStation 4 and the XBox One, and why the XBox One was more expensive. The kids reply: “The Xbox One does more. You can go online with it.” The implication was that the PS4 has less features and no online functionality.

Most consumers are walking into a retail store and comparing the two consoles. And when you see two boxes that basically do the same thing, have many of the same games, but have a $100 price difference, that’s the deciding factor.

So I find it very interesting that GameStop just started a layaway program for XBox One, that allows you to pay for the console over an indefinite period, with no additional fees. You can put $25 down, and then add to it whenever you can. You can also cancel at any time, which basically makes this a risk-free proposition for consumers.

I think this program is going to significantly increase the sales of XBox One consoles, as it essentially erases the $100 advantage PS4 has. That’s only a deciding factor when you are paying for the console in one lump sum. And by allowing people to put the console on layaway, you’re locking them in as XBox gamers before they can go somewhere else.

The reason this is so interesting to me is that I was planning on getting a PS4, not an XBox One. I don’t have the cash to just go out and grab one of these consoles, and I don’t have the ability to just sock money away until I do (between kids and bills and whatever, it just goes). But, when I have an extra $20 or $30, I can go throw it on my XBox One layaway until it’s paid off. And I won’t be charged interest or additional fees. That’s a pretty sweet deal.

Unfortunately, it’s a deal that’s only being offered for the XBox One. And that’s why I may end of up getting an XBox One instead of a PS4. So even for me, a lifelong gamer who stays up on all the news and follows all the consoles, the ultimate factor ends up being cost, and in this case, the ability to spread that cost out over a period of time.

I’ll be very interested to see how this progresses.

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  • http://www.blogger.com/profile/02941294271945023645 Greg Abbott

    Not sure I understand the logic that this helps the xbox one. Layaway means you don't actually get the console until it's paid off. Why wouldn't someone just save up and then make the purchase?

  • http://www.blogger.com/profile/09028487248405782935 Brian LeTendre

    I think there are a lot of people who just don't have the money to plunk down all at once, whether it's $400 for a PS4 or $500 for an XBox One. Since XBox One is the only one with a layaway option, I think it gives them advantage. Gamers who are going to be getting a next gen console now have the option of putting a little at a time toward it, and Xbox is locking in future consumers. As far as saving up, I think that's easier said than done. For lots of folks, is the money isn't put toward something while they have it, it gets spent on something else.