Analyst predicts: Xbox One priced at $400; PlayStation 4 at $350
Microsoft and Sony are gonna duke it out this holiday with their new consoles and the price of each device could have a big impact on which one does better. For now, Wedbush Securities analyst Michael Pachter is telling investors what he thinks each box will retail for.
The analyst released a note to investors that previews the upcoming Electronic Entertainment Expo trade show. Pachter, and fellow analyst Nick McKay, wrote that they believe that Microsoft will price the Xbox One $50 higher than the PlayStation 4 due to slightly more expensive components.
“For [Xbox One], we believe a starting price of $399 makes sense given that the Xbox 360 Pro debuted at that price point in November 2005,” wrote the analysts. “
Our estimate of the bill of materials for the Xbox One — based upon speculation regarding many of the specs — is around $325, suggesting that Microsoft could make a modest profit at the $399 price point. For the PS4, we remain confident that the new console will have a lower initial MSRP than the PS3, which had a lofty starting price of $599 that we believe negatively impacted its long-term popularity.
We expect the PS4 to debut at $349, as our estimate of the bill of materials is $275.”
These are speculative numbers. Its important to remember that industry analysts must make these kinds of predictions to aid investors.
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