Xbox 720 and PS4 to retail for $350-$400 in the US – Analyst

Sony and Microsoft will price their next-gen consoles decently and won’t make it too expensive.

This is according to Baird Equity Research, who spent CES “with a number of companies involved in video game development and distribution”. They believe that these new consoles could retail for $350-$400 in the US, which is a pretty price point, although, the Xbox 360 retailed for $300 in the US when it launched–the arcade model, I mean.

“Given the fragile state of the console game market, we expect the E3 trade show in June will take on added significance, most likely providing the industry with the first public opportunity to examine next-generation hardware,” Colin Sebastian from Baird Equity Research revealed.

“Our checks suggest that next-generation console hardware will be largely built from ‘off the shelf’ high-end PC components, along with hybrid physical/digital distribution models, enhanced voice controls and motion sensing (Kinect integration with every Xbox), and broad multi-media capabilities,” he detailed.

He also believed that a PC based architecture offers more benefit to platform holders and developers due to the lower cost of production and lower price point for consumers.

“Moreover, a PC-based architecture (Intel chips in the case of Xbox) should have a number of advantages over custom-developed silicon: for one, the learning curve for software developers will be shorter than completely new technology. Second, the cost of production and retail price points should be lower than prior console launches,” he said.

“Third, it will be easier to build online services around PC chip architecture, including flexible business models (free-to-play, subscriptions) and multi-media (over the top) content offerings. For Microsoft, this design will also allow for more integration with Windows 8 and Windows Mobile devices.”

He also believes that the PS4 could be delayed due to “early production issues”. Earlier we revealed the Xbox 720 specs which were pretty good. The PS4 could be announced in May 2013, according to a Sony executive, and a October release according to the analyst makes sense.