The Playstation 4 and Xbox One Get Possible Prices

Whose price is right?

Earlier today I commented that I wanted to learn the pricing for the Xbox One and PS4 at E3. As always there are people out there who have done the guesswork, people much more suited to the task than I. 

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Xbox One

An investment firm, Wedbush Morgan, has given the Xbox One a bill of materials at roughly $325. This would cause them to believe that the Xbox One will retail at around $399. If you read on you will find that the PS4 is estimated at $40 less. If the Xbox One doesn’t give gamers a reason to purchase it then this could spell trouble for its launch. However, Michael Pachter, an analyst at the company, has stated, in an article by Matt Martin, that:

“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.”

If they did this then it might make it more appealing to the less hardcore fans out there. I believe that it will still play a factor in whether core gamers purchase the system or not. With Sony having, as of this writing, more gameplay footage and confirmed titles for launch and early post-launch than the Xbox One it is still going to have to give gamers a reason between now and its launch to justify the extra $40.

PS4

The same firm has suggested that the Playstation 4 has a bill of materials at roughly $275, according to Michael Pachter. This leads him to believe that the PS4 will have a retail value of $359, a substantially lower price than the PS3’s launch cost. If this is the case then people are much more likely to buy it than they were to buy the initial batch of the PS3, which could mean a good boost to sales come this holiday season. The article also goes on to state:

“…Sony could subsidize the PS4 through prepaid PlayStation Network subscriptions, but unlike Microsoft, it does not have a history of doing so.”

If they went against what they’ve done, which is possible considering how they’ve gone about designing the system, then they may very well start off the next-gen faster than the Xbox One. Being the first to boom could prove helpful in gaining more developers and having that extra money to make deals for exclusive titles and first access to DLC like Microsoft has done in the past.

Wii U

In the article Pachter also talks about the Wii U and its severe need to bulk-up its line of titles. He says:

“…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.”

If this were to happen to the Wii U then it could mean serious trouble for Nintendo in the land of consoles. They have a fairly solid hold on the handheld market with the success of the Nintendo 3DS, but they need to translate that success onto the Wii U if they want to stay alive in this next generation of console wars.

It’s Up to Us

The next generation is all about the consumer. Right now it looks as though the PS4 is going to have a good start to the next year; possibly the strongest. If the Xbox One can prove that it has the games to back the projected higher price or go the subsidized route then they may start off out in front. If the Wii U delivers new and interesting exclusive from third parties and maybe finds a way to win EA back then they might still be in the running. It’s all just analysis speculation at this point but hopefully we will find out if Wedbush Morgan and its analysts were correct at E3 on June 11th.


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Author
Zach Long
I have two goals in life. 1)Publish a novel and 2) write a questline in a core Elder Scrolls game. Until then, I spend my 9-5 performing IT support. The rest of my time is spent: playing games, going on hikes with my Wife and our Corgi, or planning D&D sessions that will never happen.