Following Sony's unveil of its next generation home console, the PlayStation 4, Wedbush analyst Michael Pachter is predicting the console will retail for $399 or $449 in the US. This is $150 to $200 cheaper than the $600 the PlayStation 3 launched at in 2006.
"We remain confident that the new console will have a lower initial MSRP than the PS3, which had a lofty starting price of $599 that we believe negatively impacted its longterm popularity," said Pachter.
While Sony did not unveil the price of the PlayStation 4, that hasn't stopped several UK retailers from taking pre-orders and these retailers have a price of £400.
"The smaller jump in graphics this cycle, coupled with a PC-based architecture, should result in a smaller incremental increase in game development spending by the publishers than in prior console cycles," added Pachter.
"Although the PS4 will likely be able to play games at higher frame rates than its predecessors, we believe publishers will be reluctant to significantly increase their development budgets to maximise game frame rates, as the improvement will be largely unnoticed by many gamers," Pachter continued.