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Xbox One price cut needed for Microsoft to rival PS4 says analyst

Luke Johnson

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Xbox One vs PS4
Xbox One vs PS4

An Xbox One price cut is needed if Microsoft is to compete with Sony’s PS4 in the next-gen console wars, an industry analyst has claimed.

With the Xbox One and PS4 having both launched in recent weeks, recent figures have revealed that early PS4 sales have eclipsed those of the rival Xbox One offering, a factor some are placing on the Sony console’s considerably cheaper price tag.

"The reason Sony beats Microsoft is solely the price," Michael Pachter, a technology analyst with Wedbush Securities said.

Speaking at the Game Monetization Summit in San Francisco, the outspoken analyst predicted that the PS4 will go on to sell between 100 and 120 million units, compared with around 90 million Xbox One consoles he says will be sold during the device’s lifecycle.

He added: "Microsoft loses the next generation unless they cut price. If Microsoft drops its price to $399, I expect the sales to be equal to the PS4."

At launch the PS4 price was set at £349, with the Xbox One, which comes bundled with a second-generation Kinect camera, will cost wannabe owners £429. In the US, the PS4 and Xbox One are priced $399 and $499 respectively.

Despite both consoles grabbing consumers’ attentions not just as gaming units but wider home entertainment devices, Pachter doesn’t believe either will be taking over the home anytime soon.

"I don't think you're ever going to see 500 million consoles out there,” the analyst said. He added: "I don't know where [people] get those numbers."

Read More: Xbox One vs PS4

Via: GamesIndustry

Edonus

December 7, 2013, 11:35 am

Let me be the first one to say BULLLLLLLSSHHHHITTTT.

The X1 one is selling perfectly on par with the Ps4 right now and its $100 more expensive. MS has already stated they incur no loss and maybe a slight profit on the sells of Xbox Ones while SOny has already stated they lose approx. $60 on each unit sold. This was not from some 3rd party tear down analyst guessing group this was straight from the horses mouth.

The Ps4 will no doubt have nice launch boost because anticipation and the market structure. Sony may even end up selling more console seeing that Japan will no doubtedly pad their numbers like they did this gen but with the system losing money each sell they will have to work just that much harder to make it back.

This puts MS in a very interesting position MS is like a army that is surrounded by the enemy but they have more men and more weapons than their opponent. The Ps4 launched earlier is cheaper and is in more countries and the X1 as of the last check was half a million behind. That can be made up with the release of one big game.

Truth is if the one analysts predictions is right about sells and Ps4 does 120 mil and the X1 does 90 mil that would be great for both consoles but I will bet MS makes more money and have a higher attached rate.

angel

December 7, 2013, 2:41 pm

People you have to know your facts before you speak.X1 sold 1million units on day one,but it was released in 13 different countries, while the ps4 sold 1million units between north america and Canada. So do the math who sold more.

DarthPickle

December 8, 2013, 4:20 pm

I've done the math, and they both sold 1million unitson day 1. Who do you seem to think sold more on day 1?

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