Is Microsoft Corporation (MSFT) Making a $499 Mistake?

There is already some degree of backlash for Microsoft’s connectivity requirement to register new games. Gamers who like to trade in their old games for credit on new purchases also aren’t happy that Microsoft Corporation (NASDAQ:MSFT) will leave it up to individual publishers if they want to block the resale of their titles.

The Xbox One also won’t organically play Xbox 360 discs, but the same backward compatibility issue is hitting Sony Corporation (ADR) (NYSE:SNE).

Despite all of the Xbox One buzz, sticker shock at the iPad-like price and the platform’s restrictive ways may hold it back. It isn’t easy for young gamers to save up $500 for a system, especially at a time when the country’s youth is opting for smartphone wireless plans in lieu of car payments and other big- ticket items.

After more than three years of declining sales, the video game industry can’t afford to miss this holiday shopping season. Microsoft Corporation (NASDAQ:MSFT) is taking a gutsy move in hitting the market as the most expensive console — and perhaps substantially more expensive if Nintendo Co., Ltd (PINK:NTDOY) desperately moves to slash prices later this year — and it may not have enough time to get it right if it fails to catch on this year.

The article Is Microsoft Making a $499 Mistake? originally appeared on Fool.com.

Longtime Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Nintendo Co., Ltd (PINK:NTDOY) and owns shares of Microsoft Corporation (NASDAQ:MSFT).

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