Wedbush Morgan analyst Michael Pachter has made his own predictions regarding the prices of the PlayStation 4 and Xbox One, and they’re pretty reasonable. In an E3-Preview note sent to various investors, Pachter predicted that Sony’s PlayStation 4 will come out at a cost of $349, while Microsoft’s Xbox One will be $50 higher at $399. His guesses are based on the material costs of both systems, with the PS4 being $275 and the Xbox One being $325.
Despite the Xbox One having a predicted higher price, Pachter stated that it could be subsidized through a subscription contract with a broadband, cable or ISP provider.
“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 subsidized 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 subsidize 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 subsidize the PS4 through prepaid PlayStation Network subscriptions, but unlike Microsoft, it does not have a history of doing so.”
A subscription model for the Xbox One was mentioned a while back by Paul Thurrott, however, many of the details are different here, as Thurrott claimed that the system would be $499 with an Xbox Live subscription model going for $299. Seeing as how Microsoft has yet to say anything, the possibility still remains that Thurrott is correct.
Pachter also went on to note that price drops are expected to hit the Xbox 360, PlayStation 3 and Wii, with the Xbox 360 and PS3 dropping by $50 and the Wii dropping to $99. Vita and Wii U price cuts are also said to be a possibility.
$350 and $400 price points for Sony and Microsoft’s next-gen systems seems affordable enough, but in the case of the Xbox One and its aim to be an all-in-one entertainment box, it wouldn’t surprise me if Microsoft tried to charge a little more for it. It’d be disappoint for sure, but not incredible off-putting.
{Source: GamesIndustry}