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Analyst: PS4 and Xbox 8 to retail for $400

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DVDBack23 @ Jan 15, 2013 01:53 | 14 comments

According to Baird Equity Research industry analyst Colin Sebastian, the upcoming consoles from Sony and Microsoft will retail for $400, or possibly even less.

The analyst cites meetings he had with developers and "a number of companies" during CES.

If accurate, the prices would be lower than expected and would put the consoles in fighting range of the Wii U, which sells for $300 as a base model and $350 for a deluxe model. The original PS3 retailed for $600 when it was released in 2006.

Most likely, at $400, Microsoft and Sony would have to endure losses on the hardware, which both have done in the past to take share.

"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," Sebastian added.

"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."

"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. 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," Sebastian concluded.

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Comments

Comment by: bobiroc (Jan 15, 2013 02:02)

If they retail at those prices they will sell at massive losses

AMD Phenom II 965 @ 3.67Ghz, 8GB DDR3, ATI Radeon 5770HD, 256GB OCZ Vertex 4, 2TB Additional HDD, Windows 7 Ultimate.

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Comment by: Morreale (Jan 15, 2013 05:19)

$400 or less is the only way they'll see any money out of me this time around. Plus a couple great launch titles of course.

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Comment by: beanos66 (Jan 15, 2013 07:10)

And when it comes to the U.K . will retail for £400

Comment by: elbald90 (Jan 15, 2013 07:21)

Originally posted by beanos66:
And when it comes to the U.K . will retail for £400

without a shadow of doubt

Comment by: Bigwillyz (Jan 15, 2013 08:09)

Now that's more like it, make them more affordable and then make the profit of the software. Nintendo did it with the Wii U, as they lost on every console sold, but when bought with just one game it turned into a profit . Definitely makes more sense then a $600+ launch price

Comment by: A5J4DX (Jan 15, 2013 15:47)

if tru

Originally posted by beanos66:
And when it comes to the U.K . will retail for £400

hopefully

Comment by: Mysttic (Jan 15, 2013 17:27)

Yea at $400 I see a stripped down version *no mem* system and then a deluxe model with an HDD for $200 more. This approach has worked the last few years, so why change what isn't broken for them.

Comment by: Bigwillyz (Jan 15, 2013 17:56)

Originally posted by Mysttic:
Yea at $400 I see a stripped down version *no mem* system and then a deluxe model with an HDD for $200 more. This approach has worked the last few years, so why change what isn't broken for them.

The difference from 2006 is gamers have more options now like Android, IOS and Steam, so they are competing with a lot more today. That could make the lower price a reality

Comment by: Justoneguy (Jan 15, 2013 20:36)

If they implement ridiculous features, such as blocking used games from playing; they could be free and I still won't have one. I can't honestly see that happening though.

Comment by: Tarsellis (Jan 19, 2013 01:39)

Originally posted by Justoneguy:
If they implement ridiculous features, such as blocking used games from playing; they could be free and I still won't have one. I can't honestly see that happening though.

http://www.afterdawn.com/news/article.c...lock_used_games

Unlikely that they won't. M$ said they want to do the same. The patent alone is enough to keep me away. Let alone $ony's business practiceses already have me in a 100% boycot

Comment by: Bigwillyz (Jan 19, 2013 04:59)

Originally posted by Tarsellis:

Originally posted by Justoneguy:
If they implement ridiculous features, such as blocking used games from playing; they could be free and I still won't have one. I can't honestly see that happening though.
http://www.afterdawn.com/news/article.c...lock_used_games

Unlikely that they won't. M$ said they want to do the same. The patent alone is enough to keep me away. Let alone $ony's business practiceses already have me in a 100% boycot

They would cut a huge chuck of their userbase out by doing so. There are alot of people that just aren't going to shell out $60+ on a game you can beat in 6 hours then to boot can't sell or trade it.... It's just not feasible

Comment by: juaneryle (Jan 19, 2013 06:39)

This strategy is similar to what printer manufacturers are doing. Selling their systems cheap, but making mad money off the ink. M$ and $ony goals are to profit from the games. That's why they don't us buying used games.

Comment by: Tarsellis (Jan 20, 2013 00:34)

Originally posted by juaneryle:
This strategy is similar to what printer manufacturers are doing. Selling their systems cheap, but making mad money off the ink. M$ and $ony goals are to profit from the games. That's why they don't us buying used games.

That's right. History shows them they can abuse customers all they want, and don't loose a significant number of sales. They're greedy enough, and short sighted enough, that they're enthusiastic to take that risk.
As to wouldn't do it, they already have, removing backwards compatibility from the PS3, then turning around and porting some games to PSN.

The only way to change this is to vote with your wallet. Buy an open system, don't buy their systems, if you're disciplined enough, don't buy their products.

Remember the rootkit fiasco? They justified it, weren't sorry, blamed it on the customers, then did it again.

These technologies and patents weren't invented not to be used. Their leaks of the intentions weren't accidental, but to acclimate us to the reality. Their membership and active participation in "anti-piracy" groups is not a coincidence. The likelihood of them not blocking used games is extraordinarily slim.

Comment by: WierdName (Jan 21, 2013 23:02)

Meh, I'm done with consoles anyways. I tried XBox and got sick of paying the amount of a game a year just to do anything online, especially playing. I had a PS3 for several years and have no real complaints but it's still not nearly as open as a PC with tons of servers for the good games long after the official ones go down. And for $400 and some 'bargain hunting' one can build their own PC with pretty decent specs. All I really need right now is a graphics card.

Doesnt expecting the unexpected make the unexpected expected and therefore mean youre expecting the expected which was the unexpected until you expected it?
"Opinions are immunities to being told were wrong." - Relient K