Microsoft’s Don Mattrick thinks the Xbox One is a very good value at $499 and has explained why he believes that. In a video interview with Bloomberg, he said that they are over-delivering value.

“It’s a lower number than some of the analysts had forecasted,” he said.

“We’re over-delivering value against other choices I think consumers can get. Any modern product these days you look at it [and] $499 isn’t a ridiculous price point. We’re delivering thousands of dollars of value to people, so I think they’re going to love it when they use it.”

He also talked about how Xbox Live, Kinect, Skype, and collaboration with NFL are advantages they have over their competitors.

“We’re delivering thousands of dollars of value to people, so I think they’re going to love it when they use it. We’re really making the living room your centre of fun for your family,” he added.

Sony has priced the PS4 at $400 and it is $100 less than what Microsoft has priced the Xbox One.