Activision: Xbox One, PS4 price drops could come sooner than current-gen

CEO Bobby Kotick says greater manufacturing efficiency means prices could come down faster compared to current-generation.

Price drops for the Xbox One and PlayStation 4 could come faster than they did for the Xbox 360 and PlayStation 3, Activision Blizzard CEO Bobby Kotick said today during a post-earnings financial call.

"They've made more investments in the back office than ever before. I think you've got lots of efficiency in manufacturing costs that could potentially drive hardware prices down sooner in the cycle," Kotick said about Microsoft and Sony. "There's no indication, from our perspective, that you're going to see anything other than a very successful next seven or eight years."

The Xbox One will sell for $500 at launch on November 22, while the PlayStation 4 will debut on November 15 at $400. By comparison, the Xbox 360 launched in 2005 at $300/$400, while the PS3 came to market in 2006 at $500/$600.

The Xbox 360's first price cut came 20 months into the platform's lifecycle, while Sony implemented the first PS3 price drop in July 2007, seven months after release.

Written By

Eddie Makuch is a news editor at GameSpot, and would like to see the Whalers return to Hartford.

Discussion

280 comments
Algearond
Algearond

That would be a good thing, win-win for all gamers....I will be getting an X1.......when they release a $400 model without the Kinnect if they don't, well that's what I have my beast gaming rig for.

renegade0894
renegade0894

People need to focus more attention to product quality, instead of just looking at the launch prices..

In 2005 I bought an XBOX 360 for 400 dollars.

In 2006 I bought a PS3 for 600.  

Between 2005 and 2013, I have had to replace my Xbox 360 four times

Between 2006 and 2013, I have had to replace my PS3 once.  


I have ultimately spent much more money owning an Xbox 360 than owning a PS3, despite the initial price difference between the consoles.  

For me its all about the games.  I am buying the consoles that play the games I like.  I dont care much about the small price difference at launch, because we all know that the ultimate success of a console is about the games.

P.S. I got a Sega Genesis in 1993 and it still works... Microsoft AND Sony Equally suck in comparison to SEGA.

BlackBaldwin
BlackBaldwin

Shut up activision go back to re skinning your COD and tarnishing the other once awesome game franchises you milked to death this current gen.

L0vnThatBuddah
L0vnThatBuddah

Naughty Dog seals the deal for me ps4 in 2014 for me! Boo-ya-ka-sha!

adkcrazox
adkcrazox

I wanna get the ps4 but all my friends going to get the Xbox one, so I'm going to get the Xbox one.

Garm31
Garm31

It's the Xbone that needs a price drop. The Ps4s price is fine for the time being. People complaining about the prices, yet they pay 500 dollars every year for a smart phone with just one or two new gimmicky features.

kerrman
kerrman

Come on inFamous/PS4 bundle for $350.00 or less...

troller83
troller83

Plus they forgot to mention that probably 90% of both consoles are manufactured in Taiwan by poor Taiwaneese people for a bowl of rice/day . So the cost might be as low as 100-200 USD / unit :)

Wonder why they never advertise this?

xolivierx
xolivierx

hardware price will drop and software will increase lol

buccomatic
buccomatic

you couldn't even pay me to own an xbox one. but $500?? lol no...

milsvaard
milsvaard

It was a different time for Sony when the first price dropped, they were priced $200 above their competitor and the market was not adopting the PS3. This gen is different, PS4 can remain cozy for a year at least, the preasure is on Xbox One. It will be easier for Microsoft to sell the value proposition of the box + kinect to consumers with the same price point as Sony's machine. And we as consumers will benefit by buying cheaper hardware. 

auron11022
auron11022

I wouldnt say this out loud if I were him. His business model is dependent on a high adoption rate for this generation, so why would he say something that would make somebody wait to adopt the new systems?

rIVAL_sWORD84
rIVAL_sWORD84

Yes, Yes , Yes, ps4 price will hopefully drop in 2 years time so i can buy later.

howiex89
howiex89

From the company that brought you 3 map packs for £10. 

Why would either company drop prices when both products will be in high demand? 

Dannystaples14
Dannystaples14

I kinda hope PS4 smashes Xbox at launch. That way Microsoft might be spooked into releasing a Kinect-less version or a cheaper version for when I buy mine next year. 

If they do make the gap between PS4 and Xbox One prices smaller I will be very tempted to go Xbox again, I have been a massive fan of Xbox since the original. If not, right now I'm leaning towards PS4. The Killzone remote play video just got me started again! Looks so awesome!

rolla020980
rolla020980

Maybe it's just me andf maybe I am just burned out on all this PS4 vs Xone crap, but I cannot get excited about the next gen consoles. The graphics are evolutionary, not revolutionary, the apps are a rehash of the current gen, and the pricing is too high. I am perfectly happy with my 360 and when I run out of things to play, I will probably pick up a PS3. Besides, most of the games are available for the current gen. The next gen looks better, but that isn't everything. I have Bioshock Infinite on my PC and on my 360, but it is the 360 version I played the most.

Agreb91
Agreb91

Always have to be weary about getting launch day consoles. They are known to sometimes have production issues, and so on. Remember the launch 360s? They had plenty of issues that Microsoft had to work to iron out throughout the life of the console. 

torreth1
torreth1

I guess it comes down to how serious you are into gaming. The casuals may find it easier to wait, but the more hardcore gamers probably think the price drops usually are too small regardless if they happen around a year later. Think about it. Does a $30 price drop really mean that much?

Diablo-B
Diablo-B

This is just more motivation for me not to purchase these consoles anytime soon.

santinegrete
santinegrete

Oh, cool news. I don't any other option than to wait, but at least I'm making a list of next gen games I want to play, and most are PS4 exclusives, since I own a PC.

Megavideogamer
Megavideogamer

Glad I got PS4 at launch. But those of the people holding off for a price cut should not get too excited just yet. The original price cut for the Xbox 360 least expensive option was just $30.00 So waiting 20 months for a thirty dollar price cut is not worth it. The PS3 was another story since very few bought the $600.00 console. So 7 months wasn't to long.

Since PS4 is just 400 dollars waiting until it reaches $250.00 may be a while. Xbox one may be the first to receive a price cut. The worldwide economy still is not great.

themc_7
themc_7

wow I'm sure as shit not waiting 20 months, or even 7 for that matter.

RossRichard
RossRichard

@renegade0894 Can't really compare cartridge systems to disk systems. Cartridge systems have no moving parts. I have an Atari 2600 that still works perfectly.

crognalsen
crognalsen

@Garm31 

This is true.  I never really got the iphone/tablet craze.  It's nice to have one when traveling, but compared to a PC it's very locked down and highly limits what you can do with it.  It doesn't have to be that way, but people blindly support it.  I guess 400 to 500 every 10 years isn't that bad, but on the flip side I don't think consoles are worth the cost vs PCs over the long haul anyway.

Robboninja
Robboninja

@howiex89 Because getting the consoles into living rooms is more valuable to them than making a profit on the sale of the hardware. High demand just means more software sales and you can't sell the software to someone who doesn't have the hardware.

ffragale1
ffragale1

@howiex89 yeah you are right that the demand will be high but with the DLC and digital downloads putting cash in the system they can afford to drop the price if they want to.

Algearond
Algearond

@Dannystaples14 Yah they need to shitcan that piece of garbage known as Kinnect......and I am an Xbox fanboi

Total_mischief
Total_mischief

@Dannystaples14 Yeah, waiting for a significant price drop on the X1 myself, the Kinect is just a shitty investment right now with absolutely nothing to show for it.

Vanquishedagain
Vanquishedagain

@rolla020980 I just watched the comparison videos for Xbox One and PS4 on both BF4 and COD Ghosts. COD like always has laughable graphics but even BF4 wasn't all that impressive on both PS4 and Xbox One. I'm kinda bummed out by it. Although it does make it easier for me to wait and just keep playing my PC, XBox 360 and PS3... Eventually grab (probably) an Xbox One when they come to their senses and drop the price to match the PS4 even if it means ditching the useless kinect.

Dannystaples14
Dannystaples14

@rolla020980 Bioshock Infinite is definitely not a game you buy for visuals though. Bioshock is all about the story and atmosphere. 

In games like they had this generation where most of them were generic boring piles of trash the only thing keeping them going was the fact they looked better than what came before them.

We need more games like Bioshock. I can't wait for Witcher 3 for this reason!

Romayo83
Romayo83

@rolla020980  

So true. Is it sad the only reason why I will buy an XBone for BF4 64 player multiplayer? Cause i dont want to buy a PC to play it on? LOL

GRADERBLADE13
GRADERBLADE13

@Agreb91 This is the exact reason I never buy consoles at launch. I usually try and wait until they release a "slim" model or just an updated one with better hardware. However, videogames are like crack to me, and if I run out of things to play on current gen, I almost always end up caving... so here's hoping that doesn't happen haha

Romayo83
Romayo83

@Agreb91  

My PS3 Blu-Ray Laser fried years ago. It's not just microsoft although it seemed they had more issues. Esp since im on 360 #4.

nameaprice
nameaprice

@Agreb91 yea im worried about that too buuuuuuut i still preodered my ps4 with killzone, hope they got it right !

richter_1978
richter_1978

@torreth1 I actually think it comes down to how serious you are with your budget...I mean, there are people who are willing to buy them at launch, but unfortunately they do not have the money or resources...also, being hardcore does not have anything to do with it instead, i would say is living up for the hype...there are other factors that have been noticed for consoles when they come out for example, faulty units and devices and the library of games...so i would just play it safe and wait until the new generation finally settles to hop on for the ride!!!

ghandi16
ghandi16

@Megavideogamer The reason I'm not buying at launch isn't really cost, it's more the complete lack of exciting games. And if the price happens to drop while I'm waiting for those games? Win-win

Riddick123
Riddick123

@Megavideogamer The worldwide economy is not. So not as many people will buy either one.  So the prices will most likely come down.

Algearond
Algearond

@crognalsen @Garm31 Good points. For me it's PC > Everything else, although I dabble on 360 occasionally and will be getting an X1, tablets, meh maybe one day. My phone and PC do everything and more that they can do.

Dannystaples14
Dannystaples14

@Total_mischief Totally. I'm waiting till at least summer before buying one so it will be interesting see what they can do between now and then.

howiex89
howiex89

@Romayo83 not sad at all, its an improvement that isn't the usual "oooh it prettier crap" and is one of the reasons why I want BF4. I think this next gen will feel like an evolutionary progression. 

Personally think in a years time you'll look back and think "yeah next gen actually does offer that bit more" but theres no instant wow factor like last gen. 

I remember playing Gears of War at a mates, that was my wow moment. Can't see it this gen. Not yet anyway. 

Total_mischief
Total_mischief

@Romayo83 @Agreb91 I gave up on the 360 when my 2nd one broke. Sony did have their problems with the PS3, the X360 was just a lot more frequent.

nameaprice
nameaprice

@Agreb91 also isnt it funny how that happens? i mean wouldnt you think dev or even sony them selves would be playing these consoles and notice things like the RROD?

torreth1
torreth1

@ghandi16 @Megavideogamer I guess playing to safe is good for you. To me the lack of compelling games didnt stop me from pre-paying for both but I see where that might hold sway from the "must have new gadget NOW!!!" mentality. I am disappointed by the lack of next gen looking graphics too, and they say the wait will most likely help in that regard.

revlux88
revlux88

@Riddick123 @Megavideogamer I wouldn't be so sure that "not many people will buy either one." Both the X1 and ps4 have surpassed their predecessor's preorder #s. They are both aggressively priced as well. Especially the ps4 coming in at just about half the price of the ps3 at launch.