Jun 3, 2013

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Pachter Suggests PS4 To Cost $349, Xbox One To Cost $399

Pachter Suggests PS4 To Cost $349, Xbox One To Cost $399


While no price has been mentioned or set in stone by Sony or Mircosoft, the investment firm Wedbush Morgan feels as if they have a good idea at how much the two next-gen consoles will be priced at. If these suggestions are correct, the PlayStation 4 will be considerably cheaper than the PlayStation 3′s initial MRSP of $599.

Michael Pachter, analyst for the company, predicts the cost of the PS4 to be $349 with the cost of manufacturing for the PS4 to be estimated at $275. As for the Xbox One, it’s pegged to sell for $399 as its bill of materials is estimated to come in at $325. Though the price for the Xbox One is slightly higher, it could be possible for the console to receive a promoted price through a subscription contract via cable, internet, or ISP provider. Pachter remarked:

“We believe the ability to watch live TV from a cable, telco, or satellite set-top box through Xbox One could entice an MSO to drive subscriptions through a subsidised box in exchange for a multi-year contract. The ‘always connected’ requirement for the Xbox One likely means that a broadband connection will be required, suggesting to us that ISPs may have an incentive to offer a subsidy as well.”

“In addition, Microsoft could conceivably subsidise the Xbox One through prepaid Xbox Live Gold subscriptions (as it has done on a limited basis in the past) or premium Skype functionality as well. Similarly, Sony could subsidise the PS4 through prepaid PlayStation Network subscriptions, but unlike Microsoft, it does not have a history of doing so.”

Pachter also had some comments about what Nintendo will need to do in order to prove to consumers that its Wii U line-up for the rest of the year offers enviable titles.

“Nintendo risks losing additional share to its console competitors if the quality and volume of content available for Wii U does not pick up markedly in the near-term.

“In addition, if the Wii U’s popularity does not improve by the end of the year, many third-party publishers may pass on producing games for the console. We note that EA recently announced that it had no Wii U games in development, and it remains a possibility that the publisher will abandon the platform entirely. Should other third parties follow EA’s lead, the Wii U could be relegated to a first party only platform.”

The prices for Sony and Microsoft’s newest consoles are not the only thing that Wedbush Morgan has made suggestions for. They seem to expect a price cut for the current generation consoles and handhelds. Nintendo might offer a new bundle for the Wii U or price cut in hopes to boost sales.

[Source: GameIndustry]