PS4 and Xbox One to cost $349 and $399 respectively – Pachter

michael pachter

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.

The specs of the PS4 and Xbox One were revealed and they don’t seem like something that can be sold for under $400 unless the platform holders take an initial loss on hardware.

“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.