PS4 will debut below $400 says analyst

Sterne Agee's Arvind Bhatia says Sony has learned its lesson from PS3, believes Nintendo in a "tough spot."

The PlayStation 4 will debut later this year below $400, Sterne Agee analyst Arvind Bhatia said in a note to investors today ahead of next week's Electronic Entertainment Expo in Los Angeles.

He said Sony was negatively impacted from launching the PlayStation 3 at an "extremely high" $600 and that the company will not repeat this pricing.

"Given that experience, we believe Sony will aim to keep the price point for PlayStation 4 below $400," Bhatia said.

He added that because Sony's PlayStation Network is free, the company is missing out on an opportunity to subsidize the next-generation system through a subscription model.

Still, he believes Sony will stick with a sub-$400 price point, even if it means losing money on the console itself.

Concerning Nintendo's showing at E3 next week, Bhatia said though the company is in a "tough spot" and expectations are low, it is unwise to bet against the Mario maker.

"Never write-off Nintendo," he said, noting the company has the potential to surprise gamers.

Last week, Deus Ex and Epic Mickey designer Warren Spector said, "You underestimate [Nintendo] at your peril."

Though Nintendo is not holding its traditional media briefing this year, the company is launching a Nintendo Direct on June 11 to discuss the future of Wii U and 3DS. The first trailer for the upcoming Wii U and 3DS Super Smash Bros. game, among other things, will be shown at the event.

Lastly, Bhatia discussed expectations for Microsoft, saying the company will use its E3 2013 showing to continue to emphasize the Xbox One as an all-in-one entertainment device. At the same time, he said he believes Microsoft will also refocus attention on the power of the device as a gaming console and will show off numerous platform exclusives.

Microsoft has 15 Xbox One exclusives in the works, eight of which are all-new franchises. The company is expected to announce some of these at E3 next week and more during Gamescom in August.

Bhatia does not believe Microsoft will share pricing information for the Xbox One at E3, instead leaving those details for a later event. A sub-$400 price point would be a "pleasant surprise," he said.

Written By

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

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Discussion

449 comments
dbaig
dbaig

Good news for PS users but the point of concern is; will Sony really stick with $400 price even if it means losing money? If it does then the unprecedented demand for Xbox One may be reduced.

Dbaig

Bolee.com

maximo
maximo

I just think that MSFT has a better all round product. I think LIVE is superior to PSN and it shows too. The hardware is also superior to the PS4 not to mention that fact that the controller is all around better for the more discerning gamer. Well done MSFT!

HYPERROY
HYPERROY

Is nice that we see a good price for the ps4. That's good Sony

Jd234
Jd234

Playstation 4 Take over Would love to see MS fall off the radar and this coming from a use to be loyal xbox fan even now i have 360 not ps3 loved playstation as kid ps3 just to expensive dropped the ball but they have listened to the people and they deserve to win

daemonproject
daemonproject

This is only $50 cheaper in Australia not much difference at all! I wonder what hardware is included for that price? $549 for PS4 or $599 for Xbox one! And both consoles look like crap! Haha I defs like the Xbox one controller more! And does anyone else think the PS4 is like a PS2.4?

xTECH9NEx
xTECH9NEx

Who cares what it looks like......It's what it does and how much it cost that counts. LOL.  I think I'm in love with SONY again. 

Killer6b9
Killer6b9

$399!!!!! This is going to be the clear winner here....just saying...

raven98030
raven98030

PS4 bundle deal is a lot better then  Xbox One PS4 have me sold.


lilcurt1978
lilcurt1978

sony just put the price pressure on MS thank  god for competition

jts1891
jts1891

Sweet baby Jesus, it looks like the X1 knocked up a PS2 slim and out came this abomination. What the fuck, Sony?

chucknorris86
chucknorris86

HAHAHAHA if the Xone looks like a VCR... the PS4 looks like ...shit

Their E3 conference is SUCKING SOOOO BAAAADDDDDD 

Rubinelle
Rubinelle

Does the MGS5 is going to have an version for PS4 ?


Lowri001
Lowri001

Please let this be true, with the Xbox One beginning at £479 and a lot of unpopularity floating about I think they will be the PS3 of this generation. 

duuuuuuude1
duuuuuuude1

Using the PS4 to play all the big games through the PS Vita...sold.

Planetside 2 - Free to play out of the box...sold.

The reputation of being one of the more reliable systems...sold.

Touch pad on the controller....sold.

I'm just waiting for price point.


GrandMaster555
GrandMaster555

Price point will win.

If PS4 comes in costing lower than the XBOXone with the tech specs listed, it has already won the hardware race.  All it would have to do is continue to dominate with software.

It will be interesting to see what exclusive titles go head to head for the Holidays.  If Nintendo drops their prices, it's going to get interesting.

lionheart051
lionheart051

The PS4 has hardware equal to or better in some cases than the Xbox one and yet M$ still prices gouges selling their system for $500 bucks (On top of that a mandatory monthly subscription fee for Xbox Live)?  As if all the bad news about it being a NSA spying device, needing a 24/7 internet connection to even work and not being able to loan friends your games  wasn't enough.  They continue to mess on the faces of gamers and call it peanut butter,  PS4 ftw!

Seriously though? Is M$ trying to lose on purpose? wth lol!  That's greed for ya though, it throws rational thinking out of the window.

dcaseng
dcaseng

Sony is being handed an extremely easy opportunity to dominate the next gen market. As long as they resist becoming as greedy as Microsoft, they should easily smash the Xbox one. The only people that can ruin this for Sony, is Sony.

adamg78
adamg78

what I seen of the teaser trailer of the PS4 it looks to be smaller then the PS3 slim model just going by the image it showed..

jord1207
jord1207

well it looks my day one ps3 is not going to have much longer :)

Einstein24
Einstein24

"He believes Sony will stick with a sub-$400 price point, even if it means losing money on the console itself."

If it makes them LOSE MONEY, I really doubt they're going to do this, but here's to hoping it's true :)

TMRJIJ
TMRJIJ

This just in! That ugly looking glorified cable box that microsoft announced will be officially $500. PS4 FTW!

cspark809
cspark809

If it is under $400, I'm in!!!!!!!!!!! if it goes over $500, I'll keep playing my xbox and ps3

no_pants_4_u
no_pants_4_u

If Sony drops the PS4 for less than $400 AND keeps PSN free....they've got a new customer. Microshit slit its own throat this time, I'm thinking Sony might be the best direction as far as catering to gamers. 

106473
106473

As long as Sony keeps the PSN free and have the option of a premium service they will not have backlash over networking.  Considering size of the Xbox One and its price of $499 and the PS4 in their teaser I would agree on a price of 400 or lower for the console. 

xTECH9NEx
xTECH9NEx

@Jd234 Couldn't have said it better myself.  That's exactly what happened to me. I was exclusive PS2 until PS3 price.  I couldn't afford it and ended up migrating to the X. 

xTECH9NEx
xTECH9NEx

@daemonproject 

Just make sure you buy one of the two.  You need to stay in the house.  There's too much ish that can kill you over there.  Ya'll have ants that can kill.  LMAO

duuuuuuude1
duuuuuuude1

And I forgot to mention, one of the single greatest FPS franchise experiences in my humble opinion...Killzone!

I'm pumped.  Lets see those price points guys!

ferretboy3
ferretboy3

@duuuuuuude1  the wii u can do all this as well. also the touch pad sony copied the gamepad for that. it will be like 450 to 500 for the ps4

ferretboy3
ferretboy3

@GrandMaster555  dont count the wii u out just yet. once it announces its first party games it will get better standing ground. mario kart, super smash bros, and the new 3d mario and zelda tend to wow people over.


right now it looks like sony vs. nintendo.

Killer6b9
Killer6b9

@jord1207 key word my friend....day "one" there is WAY more reliable PS3's then 360's

adamg78
adamg78

@jord1207  PS3  will still  be releasing games  once PS4 releases.  I heard PS3  is sticking around till 2016 when the console finally retires

tbapunk999
tbapunk999

@Einstein24 Almost every system specifically around launch time loses money for the company. Sony lost their ass at the launch of the PS3.

alex000001
alex000001

@Jd234 @daemonproject only in North-America. Everywhere else it's more expensive. Here in Europe for instance it's 399 EUROS, that's currently about $530. 

xTECH9NEx
xTECH9NEx

@daemonproject @xTECH9NEx Ants, spiders and especially snakes.  That Eastern brown is a mutha.  What system do you currently have?  I have both, but game on the xbox primarily. 

ferretboy3
ferretboy3

@duuuuuuude1 @ferretboy3  lol i knew what you meant this whole time, im just pulling your leg. ;) btw i dont hate the ps4, its got some great games coming, i just hate xbox. i just cant believe microsoft would shoot themselves in the foot like that.

ferretboy3
ferretboy3

@duuuuuuude1 @ferretboy3 it doesnt need another generic fps, it needs original games. mario, zelda, just to name a few will sell millions. give me metroid as well!