As Xbox expands its entertainment offerings with new apps, it is coming in direct competition with other set-top box solutions.
All the apps are free to download but most require a paid membership as well as an Xbox Live Gold account, which cost about $60-$100 a year. For example, the HBO Go app requires a current cable subscription; for Netflix and Hulu Plus, users must pay the $8/month subscription; and to access the MLB.TV you must have the $125 annual Premium account.
To use these apps on other devices, consumers also have to have accounts set up. However, the Roku and Apple TV set-top boxes don’t require annual fees like Xbox Live Gold. Additionally, both alternatives are much more compact and they only cost $50 and $99 respectively, compared to the Xbox’s $200-$400 price tag.
According to the Wall Street Journal it’s clear that Microsoft is serious about its non-gaming apps, but “a smaller, more stylish console would make the device even more welcome in the living room,” which could more effectively compete with other options.
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