Pachter: Xbox One to Sell on Par with the PlayStation 4 with No DRM

by William D'Angelo, posted on 20 June 2013 / 7,240 Views

Now that Microsoft has done a 180 on its DRM policies for the Xbox One, Wedbush analyst Michael Pachter says that he is much more optimistic about the console this holiday season. Despite the $100 difference in price he believes that with six months until release, Microsoft will be able to level the playing field and now expects the Xbox One to sell as well as the PlayStation 4.

"As far as today's announcement, we think that gamers will rejoice, and the focus will shift from Microsoft's onerous policies to the price differential between the Xbox One (at $499) and the PS4 (at $399)," Pachter noted.

"The differential is due to the inclusion of Kinect (a high definition camera with a microphone array) with every Xbox One," Pachter continued. "Microsoft intends to offer a more robust hardware bundle than Sony will offer, and Microsoft is convinced that consumers will ultimately appreciate the value proposition presented by Kinect."

"Microsoft has not done a particularly good job of communicating the value proposition to consumers, but today's announcement will remove an impediment to the company's ability to get its message across."

However, if he is wrong and sales fall too far behind the PlayStation 4, he expects Microsoft will be ready to drop the price in 2014.

"We are confident that with six months of focused messaging, Microsoft can fully level the playing field with Sony, and we expect the Xbox One to sell as many units as the PS4. If we are wrong, we think that Microsoft is prepared to lower price next year."

Pachter added now that DRM has been removed retailers, such as GameStop, will benefit despite the fact the games will be released day one digitally. He doesn't expect digital sales for exclusive AAA titles on the Xbox One to grow beyond 50 percent.

"Ultimately, we think that no more than 50 percent of game sales will be in digital format, suggesting that GameStop's used game business could be healthy for many years," Pachter concluded.


More Articles

13 Comments

thetonestarr (on 20 June 2013)

At a higher price-point for the majority of its lifetime, the PS3 has managed to outsell the 360. It's likely that the PS4 will be able to continue that trend, ESPECIALLY with a $100 difference in its favor. Xbone will outsell it in the US, but that's the only market - PS4 will dominate Japan, and Europe - which is a larger market than NA overall - will favor PS4 as well. tl;dr: Pachter is a psycho as usual.


danasider (on 25 June 2013)

I'm pretty sure Pachter only focuses on US/North American sales, so for those saying he's crazy to think XB1 will be on par with PS4, I don't think you are looking at it from his perspective. Worldwide, I think PS4 will crush XB1, but considering the 360 outsold PS3 in North America by about 18 million units, the XB1 should still be fairly competitive in the region because of the brand power. If anything, he's saying it will lose market share in this region because it won't trounce PS4 sales and only be on par.


danasider (on 25 June 2013)

I'm pretty sure Pachter only focuses on US/North American sales, so for those saying he's crazy to think XB1 will be on par with PS4, I don't think you are looking at it from his perspective. Worldwide, I think PS4 will crush XB1, but considering the 360 outsold PS3 in North America by about 18 million units, the XB1 should still be fairly competitive in the region because of the brand power. If anything, he's saying it will lose market share in this region because it won't trounce PS4 sales and only be on par.


danasider (on 25 June 2013)

I'm pretty sure Pachter only focuses on US/North American sales, so for those saying he's crazy to think XB1 will be on par with PS4, I don't think you are looking at it from his perspective. Worldwide, I think PS4 will crush XB1, but considering the 360 outsold PS3 in North America by about 18 million units, the XB1 should still be fairly competitive in the region because of the brand power. If anything, he's saying it will lose market share in this region because it won't trounce PS4 sales and only be on par.


danasider (on 25 June 2013)

I'm pretty sure Pachter only focuses on US/North American sales, so for those saying he's crazy to think XB1 will be on par with PS4, I don't think you are looking at it from his perspective. Worldwide, I think PS4 will crush XB1, but considering the 360 outsold PS3 in North America by about 18 million units, the XB1 should still be fairly competitive in the region because of the brand power. If anything, he's saying it will lose market share in this region because it won't trounce PS4 sales and only be on par.


danasider (on 25 June 2013)

I'm pretty sure Pachter only focuses on US/North American sales, so for those saying he's crazy to think XB1 will be on par with PS4, I don't think you are looking at it from his perspective. Worldwide, I think PS4 will crush XB1, but considering the 360 outsold PS3 in North America by about 18 million units, the XB1 should still be fairly competitive in the region because of the brand power. If anything, he's saying it will lose market share in this region because it won't trounce PS4 sales and only be on par.


Wagram (on 23 June 2013)

In the US, I do believe Xbox will be on par, but Sony is going to steal the world easily.


mike_intellivision (on 22 June 2013)

Pachter was high on XB1 even before the DRM drop. He sees input as all-in-one is value. He thought ISPs were going to cut people a break to get them as subscribers if thuey had an always-on XB1, even though there wiuld be no logical reason for a company to cut the price of a serivice that you had to have. so hois logic in this arena is a bit flaky,


drakesfortune (on 22 June 2013)

Pachter is nuts. Paying $100 more for a feature nobody wants, for a console that is less powerful than the PS4 isn't going to work. I'd pay $100 more for the console that is more powerful, any day. I hate motion controls. I hate kinnect. I don't want it. That said, I'll buy both for the games, but PS4 is going to be my multiplatform machine. The reason 360 did so well was because it was cheaper, and because it had better looking games in general. That won't be the case this time. The PS4 will be cheaper and the games should look significantly better on PS4 this time. The architecture is the same, but the PS4 has better RAM, and more processing power. There really isn't a conceivable way that XBone games will be better graphically. And saying XBone, kill the dude, or XBone TV, isn't anything to me.


Michelasso (on 21 June 2013)

Ow God. Does this Patcher guy ever shut up?


Wagram (on 23 June 2013)

In the US, I do believe Xbox will be on par, but Sony is going to steal the world easily.


snakehead43 (on 21 June 2013)

I agree with this article


mibuokami (on 20 June 2013)

He is right, the higher price point won't matter this holiday season, both system will sellout, the only thing that restrict its sale will be shipment number.