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."

447 Comments

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.

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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.

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dbaig

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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

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maximo

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Edited By 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!

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HYPERROY

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

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Jd234

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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

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xTECH9NEx

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@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.

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awk1995

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so glad it 399

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daemonproject

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Edited By 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?

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Jd234

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@daemonproject where you get 549 its 399

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alex000001

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@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.

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xTECH9NEx

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@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

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daemonproject

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@xTECH9NEx @daemonproject Ants that can kill? Haha we have snakes that kill in minutes but ants? haha

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xTECH9NEx

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@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.

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xTECH9NEx

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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.

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amourkiss

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that's a steal !!

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Killer6b9

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

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raven98030

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


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jts1891

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

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chucknorris86

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Edited By chucknorris86

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

Their E3 conference is SUCKING SOOOO BAAAADDDDDD

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Rubinelle

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Edited By Rubinelle

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


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Lowri001

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Edited By 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.

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duuuuuuude1

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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.


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duuuuuuude1

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Edited By 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!

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ferretboy3

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@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

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duuuuuuude1

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@ferretboy3 @duuuuuuude1 The Wii U won't have 64 Multiplayer Battlefield 4 though.

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Killer6b9

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Edited By Killer6b9

@ferretboy3 I can


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duuuuuuude1

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@ferretboy3 Smoochy boochies.

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ferretboy3

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Edited By 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.

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ferretboy3

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@duuuuuuude1 @ferretboy3


so your basically agreeing with me. thanks

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duuuuuuude1

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@ferretboy3 @duuuuuuude1 And I quote: " it doesnt need another generic fps, it needs original games." -Ferretboy3

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ferretboy3

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@duuuuuuude1 @ferretboy3 and almost all of them sold millions. your point? mario is the best selling franchise of all time.

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duuuuuuude1

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@ferretboy3 @duuuuuuude1 There are 114 "original" games based on Mario alone.

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ferretboy3

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@duuuuuuude1 @ferretboy3


whats so funny?

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duuuuuuude1

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Edited By duuuuuuude1

@ferretboy3 @duuuuuuude1 ha ha

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ferretboy3

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@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!

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GrandMaster555

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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.

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ferretboy3

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@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.

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lionheart051

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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.

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dcaseng

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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.

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adamg78

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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..

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jord1207

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

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Killer6b9

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Edited By Killer6b9

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

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adamg78

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

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Einstein24

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"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 :)

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TMRJIJ

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Edited By TMRJIJ

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

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cspark809

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Edited By cspark809

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

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no_pants_4_u

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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.

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Killer6b9

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@no_pants_4_u Welcome to the party!!! Seriously though M$ has raped you long enough....

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106473

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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.

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Fballstr30

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LoL, I have been on board with Microsoft since xbox. Looks like I will go back to being a PS after all this crap news about having to be connected online every 24 hours.


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afroninjaen

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hmm

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