With the Electronics Entertainment Expo, or E3 2013, right around the corner on June 11, gaming gurus are very much anticipating a closer look at both the Xbox One and PlayStation 4 and have even begun throwing out price tag estimates. The latest comes from Wedbush Securities analyst Michael Pachter who pegs the Xbox One at $399 and PlayStation 4 at $349.
In a research note prepared for E3, Pachter noted how he came up with his estimates. He based the price of both consoles on the cost of materials and manufacturing, as well as floating rumors about specifications.
He took into account how both Microsoft and Sony have priced their respective gaming consoles in the past. CNet cited that the “Xbox 360 premium edition debuted at $399 in November 2005 and went on to become the best-selling console in the United States in the current generation. The top-end PlayStation 3, with a 60GB hard drive, initially sold for $599, a price Pachter wrote ‘negatively impacted its long-term popularity.'”
Pachter is also expecting both consoles to be accompanied with some kind of subsidy. At the Xbox One reveal event Microsoft execs revealed how the next-generation gaming hub will connect to television and the web, resulting in the likelihood that cable and internet providers, teamed with Microsoft, will offer some kind of reduced pricing for their services. Pachter thinks Xbox Live Gold Service members will also be rewarded with a subsidy, though he notes how PlayStation is a little barer than Microsoft in terms of outside partnerships but could offer a subscription discount.
Things start to get a little murky when we consider other sources who have accurately predicted past tech-related items. Microsoft blogger Paul Thurrott who was one of the first to correctly make mention of the Xbox event, has gone on record to suggest that gamers are looking at $499 for the Xbox One or $299 for customers who also buy a two-year Xbox Live Gold for an additional $10 per month.
Pachter is probably closer in the neighborhood of where Microsoft will price the Xbox One and Sony the PlayStation 4. Based on past pricing points, PlayStation may go a little lower to better compete with Microsoft’s all-time best selling gaming platform though Microsoft may not deviate much from the norm.
There’s no definitive release date for either console yet, with both companies pointing to “later this year” for consumer availability. Stay tuned to BostInno as we’ll be covering E3 substantially next week with the latest specs, photos, price quotes, release dates of both the Xbox One and PlayStation 4.