I choose price, though I don't buy crap because it is cheap.
Though if system 1 offer overall a good value and comes at 300$ and system 2 offers significantly more but comes at 400$, I would tend to favor system 1 even if system 2 offers more bang for bucks.
I'm quiet price sensitive though I've to vouch system 1 worth it, so it has to be a really neat package.
I would do the same for most products. Usually in the price curve for a class of product you have a sweet spot where no that much of a jump in price makes a nice difference in what you get (bangs for bucks) but usually I spot before and settle on "good enough for my needs" as I put price and budget before what I really want. Though it is also because I'm not rich at all but I noticed that evven when I've the money I end up being pretty much conservative in my choices (happens with guitars for example and sometime I know that I should I paid the tiny premium instead of ranting about those damned tuners...
).
I would think a lot of consumers are like me, but I don't think it is the majority. I would also guess there could be difference in culture (/or even within generations), with some countries more prone to saving (the countries linked to the Roman church tend to favor security to more wealth and often the associated risks to get there, French, Italians for example have overall more saving than what you would think for their level of revenues /had as the crisis goes and cultural traits are diluted for the sake of the cult of progress...).
I've also a tough time with the subscription model, for example may not have much money when I head back to France, buying a system a 199$ with a 2 years subscription at say 10$ a month, could be more doable to me than spending 300$ or more. 10$ should not be an issue for my budget on a monthly basis, further more you actually pay less than what you think thanks to inflation.
The TCO after 2 years is 439$, and if subscription is pretty mandatory to enjoy most of what the system has to offer we speak of 799$ after 5 years.
That the price not corrected by inflation and to make a proper comparison one has to know exactly what system 2 does wrt subscription services.
I wonder if they could convince me, services have to be really amazing for me to pay when I can access them for free on my PC.
I'm not an impulse buyer, actually I don't understand impulse buyers, I don't enjoy shopping, it doesn't make me happy (overall). To consider system 1 I think I would need a really low price ala 99$ even though on the long run I know that the TCO is consistent.
I realize that I mostly don't need smartphone, they are fine but overall I don't care for most of what they offer.
May be as I'm likely to cut my expanses wrt to phone (and subscriptions are cheaper in France to begin with, both ISP and phone operators), I may fit a subscription for games into my budget but for now it is a stretch.
If I were a parent, having already to pay a subscription for the kids phones, clearly the subscription model would be a no. 10$ here, 30 else where, if you do a minimal amount of accountability (which lot of broken people seem not able to do... and are left wondering where their money goes...) you know it adds up fast, and even on the span of a couple of years we speak significant amount of money.