Wedbush Morgan analyst, Michael Pachter, has mentioned in a pre-E3 investor note that the next gen consoles will be priced affordably.
He thinks that the PS4 will cost $349 and the Xbox One will cost $399, which is lower than what people were speculating based on the parts inside these consoles.
“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. Similarly, Sony could subsidise the PS4 through prepaid PlayStation Network subscriptions, but unlike Microsoft, it does not have a history of doing so.”
He does explain his position well and Sony and Microsoft could reveal the price at E3 this year.