Microsoft Could Set Low Xbox Series X Price Point to Get Ahead

New predictions from industry analysts say MIcrosoft is in a prime position to get ahead in the next-gen console price war.

A recent episode of Geoff Keighley's Bonus Round podcast featured Wedbush analyst Michael Pachter's and former Microsoft VP and EA COO Peter Moore's predictions for the Xbox Series X price. Even though they're only predictions, it's worth taking note because roughly six months out from next-gen console release dates, that's basically all we got.

VG24/7 first picked up on Pachter's and Moore's comments, which follow Bloomberg's recent predictions of the PlayStation 5 price.

Pachter and Moore say Microsoft could undercut Sony by charging $400 for the Xbox Series X, with Pachter also believing Sony will end up around the $500 range for the PS5. Whatever happens, both analysts say Microsoft has the advantage of waiting Sony out with its price decisions.

What both companies are going through right now is "how much can we afford to lose in the first 12 to 18 months? What is our attach rate of software to hardware? ... 'What are we willing to do in year one, two and three to hit 10 million."

According to Moore, Microsoft is in a place to say it can afford to lose a bit. Stock prices are currently high, he says, so the company could easily afford to subsidize the first 10 million console units to get ahead of Sony. That assumes investors are OK with the idea, which could raise some eyebrows and lower stock prices.

But it's all speculation until one side blinks and forces the other's hand. Pachter says it could be November until we finally know one way or the other, which is a timeframe we're inclined to believe since we only know what the PS5 has inside and what the controller looks like. Also, note that November is just a guess here; Pachter and Moore aren't offering inside information related to that tease from earlier, and the PS5 probably isn't coming out any earlier.

Stay tuned to GameSkinny for more Xbox Series X price news as it develops, and check out the original story on VG24/7 if you're interested.

Contributor

Josh Broadwell started gaming in the early '90s. But it wasn't until 2017 he started writing about them, after finishing two history degrees and deciding a career in academia just wasn't the best way forward. You'll usually find him playing RPGs, strategy games, or platformers, but he's up for almost anything that seems interesting.

Platforms Xbox One Tags microsoft
Published May. 12th 2020

Cached - article_comments_article_66262
Related