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Rumour – Next PlayStation and Xbox consoles to release for $400

Monday, 14th January 2013 09:54 GMT By Nick Akerman

Baird Equity research group suggests the next PlayStation and Xbox consoles will cost around $400. The analyst group has brought together a selection of findings from its time spent at CES, and also suggest both consoles will be announced before E3 in June.

How does this price compare to previous releases? It’s a significant step down from the PS3 models that arrived for $499 and $599. Xbox 360 users won’t feel much of a difference, as Microsoft’s console launched its most expensive bundle for $399 in 2005.

Baird employee Colin Sebastian commented on the research in a note to investors:

“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,” he wrote.

“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,” he continued.

“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 also believes the PS4 will launch in October and Microsoft’s console will follow in November.

Thanks, GI.

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41 Comments

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  1. Fin

    £300? (£250+tax etc)

    I could buy that.

    #1 2 years ago
  2. Nick Akerman

    Knowing our luck, the UK will have to spend £400.

    #2 2 years ago
  3. RandomTiger

    What did the premium 360 retail for in the UK?

    #3 2 years ago
  4. Dragon246

    Oh, so no second jobs now? :P

    I like it. This could theoretically mean ps4 maybe more powerful than 720, as 720 will also incorporate an improved kinect at same price. Although it will hardly matter. We also don’t know if ps4 will incorporate some new hardware *cough* gimmick *cough*.
    Next-gen starts. 2012 really was the lull before the storm.

    #4 2 years ago
  5. MrXBob

    Oh stop posting rubbish rumours and speculation. They can call themselves analysts as much as they like, it doesn’t change the absolute rock-hard fact that they are guessing.

    Until Microsoft and Sony specifically say “this is what our consoles have in them, this is what they cost and this is when you can get them” all of these endless articles are a waste of time and serve only one puporse: to get websites more hits so they can try and get ad revenue.

    Really hate the games industry sometimes.

    #5 2 years ago
  6. Telepathic.Geometry

    Sounds about right to me. If Wii U is $350 more or less at cost, then minus the display controller, plus BRD reader license and fancier insides plus (probably) selling at a minor loss, that could do the trick.

    The thing is, if you include Kinect in with that, the price will presumably go up? And PS4 will also (presumably) have some differentiating thing going on from the hardware perspective. That might make knock the price up a little, maybe $450?

    I’d pay that if it included BC and really brought something new to the table…

    #6 2 years ago
  7. friendlydave

    @3 £279 was launch price.

    I wouldn’t be surprised if we are paying £400 for these new consoles. Time to start saving.

    #7 2 years ago
  8. DrDamn

    Last couple of generations have shown that this is the sort of price people are willing to pay for a new console at launch. So not really surprising that this is what they expect them to launch at.

    Extras like kinect as standard and funky controllers will be factored in via other means. E.g. subscription models or multiple SKUs.

    #8 2 years ago
  9. polygem

    “I’d pay that if it included BC and really brought something new to the table…”

    ^^this

    it’s all speculation but i think it sounds realistic. everything above 400$ wouldn’t sell that well no matter how amazing the tech might be.
    pricing of the steambox will be interesting…not so sure if they wanna compete directly or if they want it to be more like a premium thingy. i mean with the rumored 1000$ they are not fishing in the same water, they wont sell as many machines then, question is do they have to? what’s their biz model behind it….i expect the steambox to be a lot cheaper than 1000 $ but that might just be me hoping.

    #9 2 years ago
  10. Karooo

    $400 would be fantastic, but I kind of wish they go all out with $600. I want to see technological prowess.

    #10 2 years ago
  11. Telepathic.Geometry

    @polygem: There’s no way that the Steambox will be $1,000. My guess is that it will be around the $500 mark, and will have no disc drive.

    #11 2 years ago
  12. mreko3230

    I wonder how much they spent on this “research”? It’s the exact same number most gaming journalist have been speculating for months now.

    #12 2 years ago
  13. DrDamn

    @11
    It would be nice if Sony or MS went no disc drive. Probably a bit suicidal but I don’t want one and if it saves cost/size of machine rip it out :D.

    #13 2 years ago
  14. Cryss

    @13 Why all the hate on optical media? Downloading still isn’t an option for some people. I personally like physically owning what I’ve bought, sometimes the games even come with a manual! That’s happy days

    #14 2 years ago
  15. Ignatius_Cheese

    Wish I could work for a “research group” and make stuff up too…

    #15 2 years ago
  16. DrDamn

    @14
    It’s a personal preference, but currently digital pricing is being held back by retail dependency. If they got rid of the retail dependency then they could be more flexible on digital pricing. Well I can dream can’t I? :)

    #16 2 years ago
  17. daytripper

    Can’t wait for both, apart from The Last of Us there is nothing exciting for me coming out this year so far for 360/PS3

    #17 2 years ago
  18. Telepathic.Geometry

    I also like having the physical media, but after listening to the Game|Life podcast there the other day, it seems fairly clear that for various reasons, selling a disc in a box adds about $15 on to the price of a game. It also makes the gaming rig bigger, more expensive and a little hotter.

    I think we’re close to the point where we can do away with it…

    I suppose none of the big 3 can get away with that shit, but Valve sure can.

    #18 2 years ago
  19. tenthousandgothsonacid

    @16 Don’t you ever trade in your games then ?

    #19 2 years ago
  20. friendlydave

    I like the game cases too, I enjoy having them on show with the others. Maybe the release a non CD tray console and another with a tray.

    #20 2 years ago
  21. DrDamn

    @19
    Sometimes, but a lot of the time you buy a game for £35 maybe and trade it in some time later for <£10. I'd prefer to get it for £25-£30 digitally and just keep it.

    #21 2 years ago
  22. polygem

    @TG: i too think it will be $500ish. no discdrive in the steambox…ps4 nextbox…hmmm. i’d like them to have bc, so they’d need a dd for that. i can see physical media vanishing almost completeley soon too though. i like to buy my games in a shop & trade them in sometimes BUT at the same time, if pricing is right,i’d prefer digital copies. i do not really “collect” games. some i kinda do, but i’d prefer to have less stuff lying around in the house. it’s better for the enviroment too. will sure cost more jobs than creating new ones though. it’s all a mixed bag really.

    #22 2 years ago
  23. Erthazus

    who said that there will be no disc drive in Steambox? Halo fanboys? K

    #23 2 years ago
  24. DrDamn

    @23
    Why would there be a disc drive in the SteamBox? What is it needed for?

    #24 2 years ago
  25. polygem

    it’s called speculation erth.

    #25 2 years ago
  26. Telepathic.Geometry

    I’m pretty sure I remember Gaben saying that disc-drives brought the heat, the size and the cost up. But it might actually have been the Xi3 guys now that I think of it. Still, Valve of all people wouldn’t include a disc drive in the box I’m sure… I guess Erth wasn’t being serious though…

    #26 2 years ago
  27. OlderGamer

    I have a very hard time believing such a low price point. I think the days of selling a new system for a loss are pretty much over.

    http://www.gamesindustry.biz/articles/2013-01-11-end-of-the-line-for-razors-and-razorblades

    However I can’t see 700usd systems either. So I am expecting cell phone style contracts. But time will tell. As for a bunch of anylist, they aren’t exactly a presser given by MS or Sony now are they?

    #27 2 years ago
  28. Patrick Garratt

    They’ll be cheap, quick, branded PCs. If they’re too expensive, no one will buy them.

    #28 2 years ago
  29. monkeygourmet

    This always translates as $400 = £400…

    That pisses me off as it never takes into effect the exchange rate.

    However £400 is not too bad as long as the specs are up there. (remember, these machines need to last a long time or at least long enough for streaming games to become a reality.)

    In 2 years Apple’s iPads are going to have pretty crazy specs so it’s going to be interesting to see how Sony & MS try to ‘future proff’ these consoles.

    Im guessing the obvious way is with streaming tech.

    Just waiting for them to announce 1080p and FPS and for Erth to start scoffing how he used to play games like that 10 years ago! lol :)

    #29 2 years ago
  30. Erthazus

    @29, they already announced 1080p in the past, so get out of here.

    #30 2 years ago
  31. DrDamn

    @29
    “This always translates as $400 = £400…”

    When? 360 was $400 and £280, PS3 was $600 and £425, Wii-U was $350 and <£300. When was it ever $ = £ recently? Exchange rates fluctuate so they have to build some of that into the prices, US prices never include sales tax (VAT) either so the comparative price should take that into account. (i.e. divide the UK price by 1.2).

    #31 2 years ago
  32. tmac2011

    hopefully its less expensive than this but ill get it. prolly xbox first

    #32 2 years ago
  33. polygem

    @31: wiiu was $350 and € 350. cannot recall how it was with ps3 and 360, but i believe it was the same. with vita it was.

    @27: yes, subscriptions/ contracts will happen…it just makes too much sense.

    #33 2 years ago
  34. DrDamn

    @33
    What have € got to do with it? MG was talking about £.

    #34 2 years ago
  35. monkeygourmet

    @34

    Ah right, my bad although in this case i bet $400 = £399.99.

    I can’t see it coming in at £299 really, especially as they won’t want to lose too much on launch, but hey, who knows?

    Either way, i’ll get 720 on launch to carry on my Gamertag then perhaps pick up a PS4 a couple of years after.

    Essentially what I did this gen really…

    Really not that excited with MS & Sony ip’s at the moment though.

    I’ve started to get a bit sick of Gears, Halo, Uncharted etc…

    Am hoping for a good Fable MMO, Alan Wake 2 and Left for Dead 3 on launch.

    #35 2 years ago
  36. DrDamn

    @35
    It’s $399 for a reason and for that same reason it’ll be close to £300. You can only sell hardware for what people will pay. Those are the spots for for new hardware. That’s what they will aim the systems at and that is what they will have designed them around – hitting those price points.

    #36 2 years ago
  37. polygem

    @34: i know. just saying it translates 1:1 most of the time in euroland, that’s all;)

    #37 2 years ago
  38. M. K.

    400€ for a brand new Microsoft Console? I’d buy it blind on release day, seriously \o/ Anyway, time will tell, but I guess it wont be cheaper than previous gen.

    #38 2 years ago
  39. DrDamn

    @37
    Is that the price you pay in the shop or do you still add Sales Tax on to that?

    #39 2 years ago
  40. fearmonkey

    As the 360 was $399.99 when released, I would be surprised if its less and incredulous if it would be more. Sony and 3DO proved that no one will pay $499 and up for a console, its a disaster waiting to happen.

    The Wii-u will be probably going for $299 which would place it in a good spot price wise against the new consoles, especially is they have a system seller title next year for the holidays.

    The question is though, if the new system is going to have a tablet controller that has the rumored specs that have been “leaked” and it’s going to be built in with Kinect 2, and be this ultra powerful spec, how they are going to include all that for $399 is beyond me. I imagine they actually might have two tiers again, and the 2nd tier might be more, but how much more is the question. Otherwise, i cant seem them including all that expensive technology for that price, something has to give.

    #40 2 years ago
  41. theevilaires

    $400 sounds about right I feel comfortable to drop that on a pre-order for a day 1 console. Which by the way once they announce these new consoles you better be next to a bestbuy or gamestop to better your chances of having one on day 1.

    #41 2 years ago