It’s a tumultuous time for Xbox, and the contentious decisions don’t show signs of stopping any time soon. Gears of War: E-Day will mark the return of Xbox console exclusives later this year after the PS5 version was canceled, and Clockwork Revolution will follow suit next year. More layoffs and potential studio closures are on the way as part of the so-called Xbox Reset, a brand revival intitiative under new CEO Asha Sharma. A new, unnanounced payment system for Xbox products is now sparking debates.
Xbox appears to be preparing a “Buy now, pay later” system on its website’s backend. Bits of code were found and posted to Twitter by user redphx, who shows that two new ways to make incremental payments will be coming via PayPal and Klarna. “Pay later options offer flexibility to break payments up over weeks or months,” reads a description not yet live on the Xbox website. There has been no official announcement, so the new payment options remain unconfirmed, but it hasn’t stopped contentious discussions on the topic.
Part of the mystery is how a buy now, pay later system will be implemented for Xbox (if it comes to fruition at all). Such systems aren’t novel for gaming hardware – Xbox has even had its own All-Access program in the past, letting consumers pay monthly for an Xbox and Game Pass bundle. Doing similar for games, however, would be a new step in pricing that many consider beyond the pale. Reddit user NeverBorn-NeverDead started a discussion on the topic and facetiously remarked, “This is the sign of a healthy economy.”
Another user calls buy now, pay later systems “a total demon in disguise,” saying that they are extremely common in their native Brazil, where “lower income families completely drown in debt as even basic needs become buy now pay later.” Financing is common in the United States and elsewhere as well, but typically for large purchases (car loans, for instance). Other comments note that such payment systems are only a small step away from more predatory financing schemes, like payday loans.
More positive sentiments presume that this potential pricing system will be used for new Xbox hardware, like the Series X/S consoles or the upcoming Project Helix. Other users in the same thread note it could help many justify rising hardware costs. “If consoles are going into high end smartphone price ranges,” says another comment, “then I guess it makes sense for them to also support finance options.”
Until the supposed new system is actually announced or instigated, it’s hard to predict how it will shake out. We only have a vague idea of how it will work. According to the datamined code above, using PayPal will let you “Pay in 4 interest-free bi-weekly payments, or spread payments up to 24 months.” Klarna is similar, letting you “Split your purchase into three payments, once at purchase and then every 30 days.” Whether a buy now, pay later system will be ill-received likely depends on the products it can be used for; hardware seems to be sensible for most, while games would be predatory.
In a wider context, the most generous interpretation is Xbox simply wanting to provide more options for consumers. Marketing for a buy now, pay later option might argue that it lowers the barrier to entry for gaming, but that won’t convince more skeptical consumers. Even Xbox fans know the brand is in a tough spot, and introducing financing options will likely be interpreted as an attempt to squeeze more profit out of lower-income customers.
Regardless, this supposed new Xbox pricing model could be a sign of the times. As one commenter jests, “Is financing this year’s CoD release a recession indicator?“
- Founded
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November 15, 2001
- Owner
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Microsoft
- Known For
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Halo, Forza, Gears of War