Analyst Pegs PlayStation 4, Xbox One Launch Prices

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Wedbush Morgan analyst Michael Pachter has frequently posited his opinions on the gaming industry, and with the launches of two new next generation consoles from Sony and Microsoft on the horizon, he's hard at work trying to estimate potential retail prices for the PlayStation 4 and Xbox One.

Pachter sent out his latest report as part of a pre-E3 analysis for Wedbush Morgan. According to Games Industry, Pachter believes the PlayStation 4 will cost $349 and the Xbox One will retail for $399 in the U.S. The prices were figured based on the material cost of constructing the individual consoles, with Pachter claiming the PS4 costing around $275 to build and the Xbox One costing $325 to fabricate.

While the Xbox One comes out the gate at a higher price immediately, the firm believes that price could come down with subsidized pricing. Because Microsoft has gone so heavy on making the Xbox One to TV-focused, Pachter thinks there might be cable companies willing to sell the new Microsoft console along with a cable subscription.

"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," the statement 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."

This isn't the first time Pachter has made such claims about the Xbox One, but how a subscription plan akin to a cell phone would help the Xbox One overcome its early stumbles remains to be seen. We'll learn more concrete facts in a week when E3 begins, but for now, these prices seem more than fair. What do you think?

Filed Under: PlayStation, Xbox
Categories: Video Game News
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