Xbox One to cost $399, PlayStation 4 priced at $349
When Microsoft's Xbox One goes on sale before the end of year, it
should cost $399, $50 more than the Sony's PlayStation 4, likely to
debut at the same time, according to estimates by Wedbush Securities
analyst Michael Pachter.
The analyst made his estimates in a research note prepared in advance of next week's
E3 video
game conference. He based those estimates on the cost of materials
needed to build the consoles, taking into account speculation about the
specifications for each box.
Pachter also took into account the launch prices for the
Xbox 360 and PlayStation 3. The Xbox 360 premium edition debuted at $399
in November 2005 and went on to become the best-selling console in the
United States in the current generation. The top-end PlayStation 3, with
a 60GB hard drive, initially sold for $599, a price Pachter wrote "negatively impacted its long-term popularity."
Both Microsoft and Sony declined to comment on the report.
Pachter believes Microsoft, Sony, and their various partners will likely
offer some subsidies to offset the cost of the consoles. Given that the
Xbox One includes the ability to watch live television, cable and
satellite television operators might offer discounted boxes in exchange
for multiyear contracts. Similarly, given that the Xbox One depends in
large measure on being connected to the Web, Internet service providers
could offer a subsidy as well. And Microsoft could offer discounts for
gamers who purchase long-term commitments for its Xbox Live Gold
service.
The PlayStation 4 offers fewer opportunities for
subsidization, Pachter wrote. But Sony, too, could discount the console
for gamers who purchase its PlayStation Network subscriptions. And he
added that Sony could add some of the features Microsoft has promised in
its Xbox One, which could open up new possibilities for price
subsidies.
"We believe that many of the multimedia functions
demonstrated at the Xbox One reveal event could be emulated by Sony in
the next year or so through a firmware update," Pachter wrote.
Pricing speculation is something of a sport in the days and weeks before
console makers release actual price tags. In April, longtime Microsoft
blogger Paul Thurrott reported that the next Xbox would cost $499,
or $299 for customers who also buy a two-year Xbox Live Gold
subscription for $10 per month. Previously, Thurrott accurately broke
the news about the Xbox One unveiling date of May 21.
Pachter also expects all three console makers, including Nintendo, to
drop prices on the previous generation of consoles in advance of the
holidays. Microsoft and Sony could drop their prices by $50 or more, he
wrote, while the Nintendo Wii could drop to $99. Nintendo's
Wii U, which launched last year but has seen tepid sales, could also see a $50 price cut, Pachter wrote.
"(W)e continue to believe that Nintendo misfired with the Wii U, and
believe that the next generation of consoles will see a market share
shift from Nintendo platforms to Microsoft and Sony platforms," Pachter
wrote.
Updated at 4 p.m. PT with Microsoft declining to comment on the report.
