PlayStation 4 and Xbox 720 to Follow Contract-Based Pricing Model?

Sony's PlayStation 4 and Microsoft's Xbox 720, or whatever they decide to name their next console, are expected to launch within the next couple years, and the idea of pricing for both consoles has often been discussed on various media outlets. As many of you know, Microsoft tried a new pricing model recently by charging only $99 for a 4GB Xbox 360, Kinect, and Xbox LIVE Gold with a signature committing to paying $14,99 per month. Essentially, Microsoft decided to test out the cell phone pricing model to appeal to those who cannot afford the upfront costs involved.

With that said, because of the next generation consoles striving to outdo each other with the most powerful technology that makes sense for a video game console, the costs will likely place these consoles at a steep launch price that could have a negative impact on the initial sales similar to the rough start that the PlayStation 3 fought through. If this were to be the case, the idea of implementing a contract-based pricing model for both consoles could be implemented to counteract the high costs involved.

Watch as I discuss why this could be a beneficial pricing model for both Sony and Microsoft with their next generation consoles then ask that you provide me with your opinion in the comments section.

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