Pachter: Xbox One $400, PS4 $350

Analyst Michael Pachter estimates prices for upcoming consoles from Microsoft and Sony, says Nintendo must have strong E3 showing.

Wedbush Securities analyst Michael Pachter has weighed in on what he believes the Xbox One and PlayStation 4 will sell for when they both launch later this year.

In a note to investors obtained by Games Industry International, Pachter said he believes the Xbox One will retail for $400, while the PlayStation 4 will debut at $350.

Pachter's pricing estimations are based on bill of materials figures of $275 for the PS4 and $325 for the Xbox One.

Though Pachter believes the Xbox One will be the more expensive console at launch, he also predicts that Microsoft may offer a subsidized model, available at a lower price when consumers agree to a subscription plan.

"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," Pachter said. "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."

GameStop chief financial officer Rob Lloyd said last month during a post-earnings financial call that the Xbox One and PlayStation 4 are likely to be less expensive at launch than their predecessors.

The Xbox 360 launched in 2005 for $300/$400, while the PlayStation 3 debuted in 2006 for $500/$600.

Regarding Nintendo and the struggling Wii U, Pachter said the company must use its scaled down 2013 Electronic Entertainment Expo showing to prove to consumers that compelling games are coming for the system.

"Nintendo risks losing additional share to its console competitors if the quality and volume of content available for Wii U does not pick up markedly in the near-term," he said.

"In addition, if the Wii U's popularity does not improve by the end of the year, many third-party publishers may pass on producing games for the console. We note that EA recently announced that it had no Wii U games in development, and it remains a possibility that the publisher will abandon the platform entirely," he added. "Should other third parties follow EA's lead, the Wii U could be relegated to a first-party-only platform."

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Discussion

3201 comments
magma3879
magma3879

Patcher: can u give me some tree fiddy

Chef's dad: damm u lochness Patcha u got the price wrong on bough o em

magma3879
magma3879

x box price is just stupid  xbox has just persuaded me to not buy it 

user_pt
user_pt

Just remembered this failure of an analyst and the prices he predicted.


HA! Try again Pachter. This might very well be the one moron on the entire planet that still has "journalists" listening to him after so many fails. Seriously Makuch, stop listening to what this ignorant says.

joeycaps479
joeycaps479

Do what I always do, I never buy a game or system when it comes out.  if you don't buy this overpriced xbox one, I guarantee in 30 days it will be a price drop.  they overcharge and hype new games and systems because they know people will complain but stand in line waiting to buy.  If people just didn't buy it, within 30 days you would see a 50 dollar price drop. in 30 more days if people still don't buy it will be 100 dollars cheaper, but most gamers will complain about the price but rush out to buy it on the first day.

snxx
snxx

Xbox One: U$499

PS4: U$399

Pachter: WRONG AGAIN, oh my, this guy is on a spree! :D

If there's something in this industry you can trust, that something is that Pachter will be wrong.

edpeterson
edpeterson

"I'm excited to announce that Xbox One will launch this November in 21 markets around the world. At $499 in the US, 499 Euros in European Markets. 499 pounds in the UK"... I think this guy is a little off (especially if you convert euros or pounds to dollars lol)

TMRJIJ
TMRJIJ

Pachter, you just got DENIED! Xbox one is $500

MissMorphine
MissMorphine

hey pachter. dont you ever get tired of being WRONG?

Aphyosemion
Aphyosemion

It sure sounded good, until reality set in.  Xbox is going to be $500!!!  Ack!!  OH GOD, MY WALLET HURTS!!

Let's hope the PS4 is cheaper, since I'm not paying MS to have my customer rights violated or taken away completely, anyway. 

106473
106473

Xone is $499.00 + tax :) screw that for some entertainment system. 

lewibaygo
lewibaygo

Pachter wrong again you paid off MoFO

daemonproject
daemonproject

Australians pay too much for gaming! And Australians need to be heard on this subject! Also does anyone know that our Prime Minister gave Bill Gates $1Billion dollars whilst visiting only a few weeks ago and what for I don't know?

daemonproject
daemonproject

I assume this is USD so how do you justify Australians paying $899 per console? AUD compared to USD is so close and this means we're paying a massive mark up and that is ridiculous! Australians have always been ripped off for gaming! The US,UK etc pay around $60 for their games we pay $120! In no way does it cost double to ship to Australia So why are we paying so much?

DeanoFantasy
DeanoFantasy

If your going to pay more for Xbox One with lesser specs than the PS4 and to simply watch TV via your TV then you must be barking mad.

DeanoFantasy
DeanoFantasy

And with the PS4 having higher specs, yeah right! more like around $500 or something.

NetGod
NetGod

On a side note, I just checked my local online classifieds and it looks like people are selling their current gen systems (XB360 and PS3), in droves for under $100. Thats including 3-5 games. Does anyone else think thats really cheap? Seems like people should be able to get more money than that.

tionmedon
tionmedon

not happening...............fap it.

thezenhu
thezenhu

Seriously Pachter, I stopped listening to your predictions when you said Bioshock was going to the game of year in sales and GTA5 was coming out last September.  Shame you are not being paid for your accurate predictions.  Gamers have the best insight into what is coming and what is best for us.  We spend the money and we make these corporations rich. Never forget that. Players are the power.

adamg78
adamg78

I bet the PS4 is going to be smaller  then the PS3 slim I have a feeling its going to be the size of a laptop . But find out soon E3 starts Monday.  but sony for life im not much of a Microsoft  fan and if its true that the Ps4 is $50 cheaper then the xbox  one that is  so awesome 

Arura Moody
Arura Moody

yep I like the ps4 price. not as expensive as I thought they'd make it. if this is true

judahstarguy
judahstarguy

xbox one is dead in the water before it even hits the shelves.  R.I.P.

jmc88888
jmc88888

Pachter is a complete idiot.

Yet he thinks the PS4 will cost less then the One?

If it's true that the Kinect 2 and other things are causing the Xbox one to be more expensive, then Microsoft will have a major problem on it's hands.

Cheaper...more powerful...and doesn't spy on you? No xbox live charge as well? 

I think it's pretty clear to see what will sell more.

Also the Wii U should see more games and a lower price.  

I felt M$ was basically screwed even if it was $50 cheaper than the PS4...but if it's more expensive...wow.

Somehow it doesn't make much sense that a console only about twice as powerful as a Wii U could somehow be the most expensive console.

arqe
arqe

Ps4 is for games lets say 400$ and Xbox One is for games and also other things lets say 450$ ? Xbox One please ... Why should i pay Ps4 or why should anyone in the world buy anything from Sony. Sony is probably the MOST overpriced company in the history. And people still says "Cant pay for XLive" .. yeah how and why the fuck you should pay 3$ per month for better service ? ... please ... Ps4 got %50 more power ! And how is that ? DDR5 to DDR3 is %50 power difference ? And comparing already "LOW LEVEL" Cpu's againts eachother ... Please guys ... Be Realistic and get a PC ...

thequickshooter
thequickshooter

Pachter’s ass must hurt since he keeps pulling out so much information from it…

telaros
telaros

cheaper subsidized two year cable contract model XO? Or PS4 at 350 bucks with more power and better exclusives because they actually have brands beyond Halo and Gears of War. All for the low price of a Wii U of 350 before tax? Not bad. PS4 is looking good. If they throw in a real browser and allow you to upload your streams to everyone and not just psn people, I'll buy. Totally buy!

I'll start saving up for my PS4 now.

hull20004
hull20004

wow watch tv from xbox. too bad i live in an area of the world where we have INTERNET based tv broadcasting (see Estonia)

And PS3 already has a tv box

TohouAsura
TohouAsura

"Pachter's pricing estimations are based on bill of materials figures of $275 for the PS4 and $325 for the Xbox One."

And yet the PS4 is still stronger by a very big difference.

Just what is it Microsoft wasted money on? the VCR plates?

slainta
slainta

What? A BoM of $275only for the PS4? I thought the GDDR5 RAM only was very expensive. If that's true they could afford even a more powerful GPU, what the heck!

osxgp
osxgp

@NetGod Supply and demand. If 10 people are selling a PS3/360 for $150, then if you want to sell yours; you have to lower your price to make it more appealing to sell.

Gonyao
Gonyao

@adamg78 They will be the same price, at least here in Europe, see my post below.

Mattooh
Mattooh

@arqe Be realistic and get a PC? News flash bud, a DECENT gaming PC STARTS around $1000+, idk about you but I think I'd rather spend the 300-400$ price tag for the new consoles. Oh, and before you start bashing Sony, get your facts straight bud, the Xbox 360 is a piece of SHIT, it constantly broke and never was reliable, verses the PS3 that never had any major hardware problems.

Mattooh
Mattooh

@arqe Be realistic and get a PC? News flash buddy, a DECENT gaming PC START'S around $1000+. Not everyone has that amount of cash available. I'll take a console, that being the xbox one or the PS4. Oh I forgot to mention that the xbox 360 was a PIECE of SHIT that constantly broke! Don't bash on Sony until you get your facts straight bud. 

reborn007
reborn007

@arqe ...most overpriced company in history...guess stock prices were not factored into that statement ....even without considering stock prices I still think Apple is more overpriced...and they release the same product with a small upgrade..

IndridCipher
IndridCipher

@TohouAsura its got alot of things for the cable and the 3 operating system thing i guess.  + kinect probably isn't cheap

jmc88888
jmc88888

@slainta  

While I will be buying a PS4, the nvidia equivalent right now is $200, and as the GTX 700 series roles out it will be in the $150 range that by this time next year will be selling for $100.

The 'One' has an nvidia equivalent of $100 right now, and probably $60-80 by this time next year.

legend162
legend162

@Mattooh @arqe your right,360 had the red ring,but did you forget,ps3 had ylod, I do believe that is a major problem

x_lightning_x
x_lightning_x

@Mattooh @arqe you obviously dont know jackshit about pc's then. a decent gaming pc would be around 600-700. budget gaming pc's usually go around 400-500 and high end pc's usually go around 800-1000.only those monster pc's that have WAY over the top parts lke i7 processors go for +1000. and dont assume i only know this because im some sort of pc fanboy because i own and play a ps3,360,ps2,dreamcast,wii,gamecube and 3ds so i like consoles just as much as the next guy but lets be realistic like OP said pc's are the future and unless these new consoles seriously step up their game pc's will take over.pcs can already do everything these "next gen"consoles can do and much much more.

arqe
arqe

@reborn007 @arqe said "probably" and most of the Apple products got their on levels.Doesnt have much competition.Most people doesnt buy from Apple becouse its overpriced but most of the time noone got the Equal device to compare with. But with Sony you its all the same.You can buy Equal TV - Phone or anything cheaper. And Cheaper means you can buy with HUGE difference ...

andon13
andon13

@jmc88888 @slainta Good luck finding a GPU with 8 GiB of RAM anytime in the next year. You'll have to buy 2-3 GPUs for that.

DeanoFantasy
DeanoFantasy

@legend162 @Mattooh @arqe The PS4 will likely to have similar TV features like Xbox One, and the red ring of death was far far more common with the 360s over heating problems not to mention scratched disks, its the worse manufactured console in history.

tionmedon
tionmedon

@x_lightning_x @Mattooh @arqe try to price I7 3960x,16/1600,512 samsung SSD,wifi,blutooth,blu-ray, and oh my awesome 690gtx.x79 mb and a cool alienware case...............fap it........

talamalopilis
talamalopilis

@arqe @reborn007 For gods sake guys ^^^^ spell your words correctly and at least re-read your sentences. I usually dont care for grammer but this is just ridiculous.