Pachter: Xbox One to Sell for $399, PlayStation 4 for $349 - News
by William D'Angelo , posted on 03 June 2013 / 7,597 Views
Wedbush Morgan analyst Michael Pachter has released what expects the PlayStation 4 and Xbox One will sell for at launch. He estimates that the materials in the PlayStation 4 will cost Sony $275, while the Xbox One will cost Microsoft $325.
The PlayStation 4 is expected to launch at $349, much lower than the $499 and $599 PlayStation 3 bundles cost at launch. Pachter expects Microsoft to sell the Xbox One for $399 at launch, however he expects a subscription-based model to be sold for less.
"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," said Pachter. "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," he added. "Similarly, Sony could subsidise the PS4 through prepaid PlayStation Network subscriptions, but unlike Microsoft, it does not have a history of doing so."
Pachter added that Nintendo has a lot to prove at E3 and needs to show the consumers its line-up of games for the rest of the year. He says that if sales don't pick up by the end of the year competition from the PlayStation 4 and Xbox One, and even older consoles, will be too strong for things to be able to be turned around.
"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," said Pachter. "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."
Wedbush Morgan is expecting the PlayStation 3 and Xbox 360 to both drop in price by $50 by the end of the year. Sony is also expected to drop the price of the PlayStation Vita as well and Nintendo to cut $50 off the Wii U price.
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Considering he's pretty much ALWAYS wrong by a significant amount, I'd add another hundred to each of those prices.
That is a good approach. It will probably be at least 50 - 100 more on price.
Agreed. You have the DDR5 RAM on Sony's side, Kinect included with every Xone, and Pachter's idiotic declaration a few years back that no one would even WANT next-gen consoles apart from Nintendo fans. These numbers are horseshit.
I would be amazed if the production cost are really that low in the first year.
I seriously doubt that. 8 gigs of GDD5 isn't cheap. These consoles are suppose to offer so much more than WIi U and Nintendo is taking a loss on it. Now though suddenly for the same price Sony is releasing a system with a better GPu/CPU/RAM, Camera, new controller with touch screen and do it all at the same price? LMAO I don't think so. Even Sony already stated they wont be making the same mistakes as last gen. They are not taking a 300 loss on each console sold.
It's Pachter so nm. Most people don't understand he cant really talk about what he actually knows. He wouldn't have a job if he did. What he does do though is make sh!t up and see how much of it sticks when flung against a wall.
Think about it. He is an analyst who gets to see things normal people don't. He is required by his type of job to not disclose any inside information. He can talk BS all day long but when and if he actually started giving out real information, he's be fired.
So the Wii U is taking a small loss at $350, yet systems 8x the power cost the same or 50 bucks more? This would be a great price point but I don't see this as possible without major losses.
I did not see the Pachter thing in front at first and thought these were the confirmed prices. Since it's Pachter, I'll take it with a grain of salt.
This article was confirmed for Pachters' normal levels of wrongness when it got to "Xbox One to sell..." nope I'm out.
It's always negativity agains Nintendo. Michael Patcher has no idea. Xbox One doing well? LMAO.
How can people take somebody like him seriously? The Wii U sales already rose significantly and if Nintendo fires of their Big Guns, this chrismas will be the best. Besides the hardcores of the hardcore Xbox Fanboys are going to buy the Xbox One. The only threat I can see for Nintendo is Sony.
I'm still picking $450-$499 for both. Has isupply done a breakdown of cost based on what they know? They know the RAM, they have a good handle on what the CPU/GPU an do. They know how much a 6xBRD can do. and they can guess that PS4 will at least have a 500GB HDD. Xbone controller must be not much different to 360, a bit of a tweak but not much else. PS4 controller is a bit of an unknown quantity with the touchpad, but they should be able to take an educated guess.
Well.. that was a very, very optimistic preview. In fact, if they want to sell well, that would be the ideal price, but considering what we know so far, those prices mean that both consoles would be sold with a huge loss.
ISPs in USA offering a subsidy for Xbox one consumers because of the "always online" connection... Yea, right! Pachter is clearly high on crack. Why the fuck would the greedy and monopolistic ISPs in USA offer a subsidy for Microsoft consumers? In your dreams Pachter.
Probably both will launch at 399. Ms won't make the same mistake as Sony and launch at a higher price point.
