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Xbox One to cost $399, PS4 for $349 says Pachter

Monday, 3rd June 2013 14:39 GMT By Dave Cook

Xbox One will retail at $399 at launch, while PS4 will run you $349, according to Wedbush Morgan Analyst Michael Pachter.

GI.biz reports that Pachter made his predictions in a pre-E3 address to investors today, during which the analyst placed the PS4′s build cost per console at $275, and added that the Xbox One will cost $325 per unit.

Pachter added that Microsoft may still consider a subscription-based Xbox One model at cheaper cost, which backs up rumours of a $299 version.

In the address, Pachter added, “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 ‘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.

“In addition, Microsoft could conceivably subsidise the Xbox One through prepaid Xbox Live Gold subscriptions (as it has done on a limited basis in the past) or premium Skype functionality as well. Similarly, Sony could subsidise the PS4 through prepaid PlayStation Network subscriptions, but unlike Microsoft, it does not have a history of doing so.”

What do you make of the prices above? Do they make sense or are they too expensive? Let us know below.

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54 Comments

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  1. Dragon246

    Not surprising.
    Although if true, Wii U can be buried in graveyard after next-gen arrives.

    #1 11 months ago
  2. Lengendaryboss

    They seem to be the right price points, now all Sony and MS have to do is wow us at E3.

    #2 11 months ago
  3. SlayerGT

    I think that’s too low.

    #3 11 months ago
  4. Joe Anderson

    I said PS4 would be £349 and Kinect One £399 (sorry Xbox One, genuinely wrote that so left it in).

    #4 11 months ago
  5. KineticCalvaria

    Sounds good to me, I’ll take 50 of each!

    What are we thinking in £?

    X1 £349?
    PS4 £299?

    Or is that wishful thinking? :)

    #5 11 months ago
  6. hitnrun

    I’ve given up flaming game sites for reposting Michael Pachter, but could you at least phrase the headline more informatively and less bait-y?

    Like “Wedbush Morgan Securities Analyst Michael Pachter predicts XboxOne to cost $399; PS4 $349 according to speculation of investment analyst Michael Pachter.”

    Anyway, he’s definitely low. Those are the kind of price points that gamers would hold out hope for, if they dared. I predict both prices will be exactly $100 more. Never mind pricing high for early adopters; they’ll have to be high just to manage the inevitable inventory shortages.

    #6 11 months ago
  7. Christopher Jack

    If only this were true, I expect both to be charged a further $100 more.

    @5, Try more like
    X1 £399
    PS4 £349

    #7 11 months ago
  8. melonbuster1

    Great prices. . Because it’s old tech.. not the best video cards.. we shouldn’t pay more than this. @1 your right.. wiiu is dead if this is true. . 179.99 and they could survive. For 2 years more.. no price droo and they are done

    #8 11 months ago
  9. KineticCalvaria

    @7, Yeah I think that’s probably more likely lol.

    #9 11 months ago
  10. tmac2011

    noty a bad price for 349 dollars but i never really listen to this guy

    #10 11 months ago
  11. NeutralBlade

    This seems unlikely without a sub contract which in the end, you’ll pay more for the system than buying it outright. M&S do want to make money, so $400 – $500 seems a lot more likely.

    But if the prices are low, and the gotcha! is monthly sub fees for online, (meaning next-gen online prices could be $10 – $15 per month), then those consoles really won’t be cheaper, now will they? Neither one will bury the Wii U, if it will cost a lot more to play them online; while Wii U is free online, while having an unrestricted used games market.

    With all these new features they’re adding to online, I highly doubt prices will remain the same as this gen. Hopefully these questions will be answered at E3. And I really doubt the PS4 will retail for cheaper than the Xbox One. If anything, the prices will be the same, or the Xbox One will be a little cheaper. The only thing that would make the Xbox One more expensive, is if Sony chose not to bundle their PS Eye with the console.

    #11 11 months ago
  12. DrDamn

    They have both been designed around hitting the $400 sweet spot. If rumours of no camera included with PS4 are true then I wouldn’t be surprised if the XO was a little more expensive. That would be partly intentional to give a perception of more/better.

    UK prices I would fully expect $400 ==> £300. That’s the way it’s been for a while and it’s near bang on taking exchange rates and VAT into account.

    #12 11 months ago
  13. Tavarish

    So… 500€ for Europa and 600€ for Finland just because Finland, for both consoles? :D

    #13 11 months ago
  14. Froseidon

    To be honest, I think that the pricing that Amazon used as a placeholder was too high, but it was just that, a placeholder. However, this price seems a little too low to me, considering that the PS3 and X360 seemed to (if I remember correctly, it was sometime ago) be a higher price than these new ones. I think Sony and MS will be wanting to make more profit off of these consoles than these prices will. I’m assuming at least £/$50/100 higher than what Patcher predicts.

    To be honest, I think a better source of information (I.e – I mean the companies themselves) will have to give a price before I believe anything. Also going off the fact I’m not a large fan of Pacther at all (which probably means I am a little bias against his predictions, but I seriously think he is just being a little hopeful with his pricing predictions).

    #14 11 months ago
  15. silverstorm

    @13 Same shit here in Sweden. But still it’s good news, i expected about 400 dollars for PS4.

    #15 11 months ago
  16. DrDamn

    @14
    XBox360 launched in the UK at £280 for the full-fat version, PS3 was £425 and widely accepted as poorly priced. This is why I think they will both be aiming for ~£300 and the design decisions they’ve made reflect that. They’ve both gone for very good value builds.

    #16 11 months ago
  17. ps3fanboy

    I TOLD YOU SO THE XBONE WILL COST MORE AND DON’T FORGET THE YEARLY ONLINE FEE ON TOP OF THIS.

    THAT WILL BE A MANDATORY PAY BECAUSE THE XBONE NEED TO CONNECT ONLINE..

    YOU WILL BE LOOKING AT A MINIMUM OF 499 HERE TO PAY AT DAY ONE. THEN YOU WILL BE PAYING EVERY YEAR THE ONLINE FEE. DON’T BE FOOLED PEOPLE, JUST SAYING.

    #17 11 months ago
  18. G1GAHURTZ

    The man knows nothing.

    #18 11 months ago
  19. Digital Bamboo

    There are PS3 & Xbox360 systems that cost that now. When has a new console ever arrived at the same price point as the system it was succeeding? Will we be able to pick up a current gen system for $150 soon?

    I think $400 is the absolute minimum for both (in North America), barring any contractual bullshit.

    #19 11 months ago
  20. Samoan Spider

    As I’ve said before about Pachter; Throw enough shit at the wall and some of it sticks.
    I’d love to see both consoles at the £300 price point but we all know that £349/£399 is far more likely.

    #20 11 months ago
  21. Dragon246

    Aren’t higher Eu prices because of taxes? I wonder why people are the company’s throats when its their own govt. which makes these things costly.

    #21 11 months ago
  22. NocturnalB

    A subscription based box doesn’t make any sense at all. It barely makes sense hooking your cable box up to your Xbox, but tossing another subscription on top of your existing cable/sat service? Why would anyone do that? I HIGHLY doubt a sub-based Xbox will happen, although Microsoft has surprised me a lot recently. The greed in particular stands out.

    #22 11 months ago
  23. ps3fanboy

    —-

    #23 11 months ago
  24. naffgeek

    I have been Xbox all this gen really (even though I eventually bought a PS3 for Uncharted).

    But I just cannot see me buying a Xbox one.

    The reveal just seemed like a bunch of middle aged men salesmen trying desperately to seem relevant.

    I am really looking forward to E3 but they will have to have one hell of a showing to get me back onside no matter what the price of the console.

    #24 11 months ago
  25. Samoan Spider

    @23 That’s Warren Spector, not Michael Pachter. Secondly, perilous means risky, not doomed to failure.

    Edit: Left here for posterity despite ps3fanboy backtracking on his link :)

    #25 11 months ago
  26. ps3fanboy

    @22 i agree with you NocturnalB nothing ms do make sense and the greed particular stands out. this gen for ms will be a rude awaking and may be the last xbox we will ever see.

    #26 11 months ago
  27. polygem

    yeah he knows shit……but IF true i would be very happy with the price, eventhough it will be 349 dollar = 349 euro here. but still, fair price. i expect it to be higher though. i have putted 500 euro aside for one of those machines plus 1 or 2 launch games, so yeah, looks like i´m in. i´d like to have pseyemovethingy not to be bundled with the console but being an optional purchase.

    #27 11 months ago
  28. ps3fanboy

    @25 okay my wrong i will have to take it back then.. no tears shed…

    #28 11 months ago
  29. Samoan Spider

    @28 Lol, no probs :D

    #29 11 months ago
  30. DrDamn

    @Dragon246
    Yes. For example on current fairly low exchange rates $399 ==> £266 + 20% VAT ==> £319.

    #30 11 months ago
  31. Tavarish

    @21 So if e.g. PS4 would cost 350 USD you don’t need to pay tax on it in US? o_O I thought it is, in US, price + tax during purchase? E.g. 350 USD + 100 USD for tax?

    That said yes, in EU price includes tax, VAT, and varies from country to country. Still there is clear differences in baseline price.

    For some reason baseline price for things like game consoles, guide price is given by manufacturer like Sony, is higher in Finland than in Germany. When baseline price is higher than in e.g. Germany and then gets VAT on top if it we are paying way more than rest of Europa. It makes no sense, but it’s how it goes.

    Edit: Comments like #26 really make me roll my eyes and laugh. It requires small miracle for X1 to tank and not to be good investment for MS.

    @30 You really and actually still think that manufacturers and/or publishers give a fuck about exchange rates? xD

    #31 11 months ago
  32. hitnrun

    @24: Ditto, and I never even bought a PS3 (the size of my pile of shame would have made that financial malpractice).

    And the E3 showing will have to be of as-yet-unannounced exclusives, since if this gen taught us anything, it’s 1) the consoles will be virtually the same in capability 2) to the extent that they’re not, devs will code to limitations for a multiplat release 3) the PC will have surpassed both probably by release day.

    @31: The US of A doesn’t have a sales tax (or the hidden VAT). Most US states have a sales tax of about 6-7%, which works out to $20-$30 on a console purchase.

    #32 11 months ago
  33. Christopher Jack

    @30, Wouldn’t that initial $399 also include tax? Not sure how it is in America but in Australia we almost always have GST(our version of VAT) included in the final price, I think it maybe actually illegal to not include it.

    #33 11 months ago
  34. DrDamn

    @31
    I’m basing it on past experience. In the UK console prices have remained very competitive with the US prices when you take exchange rates and VAT into account. Examples – Launch prices PS3 $599/£425, 360 $399/£280. Current price of a Xbox 360 4GB in the US $199, UK equivalent £130.

    You do seem to get shafted in Finland, but in the UK the evidence says the prices are competitive.

    #34 11 months ago
  35. DrDamn

    @33
    No. As tax varies from State to State prices quoted are before sales tax.

    #35 11 months ago
  36. Tavarish

    @32 I keep forgetting that USA is basically taxes free nation :D

    @33 Prices that are announced for EU have to include VAT, tax, in them because it’s demanded by European laws. So if e.g. Sony says “PS 4 is 400€!” that announcement price has to contain tax in it.

    That said I really don’t see Sony or MS using actual exchange rates, but instead just either pull price from their asses or slightly low-ball UK price and does 1 USD = ~1.2€ conversion for EU.

    #36 11 months ago
  37. DrDamn

    @36
    They won’t use strict actual exchange rates as they will change, but they have a big influence on the price they can set goods at. For example the WiiU price at release was hampered by a strong Yen.

    However as consumers if you want to compare prices between countries and make a point about any differences you have to use exchange rates and taxes in your comparison – at least as a basis.

    #37 11 months ago
  38. salarta

    For once, Pachter has said something I don’t immediately disagree with. That doesn’t mean I think he’s right, only that this is a subject so up in the air until official announcements that it can go all sorts of ways. Though I guess something could be said that he likely did his homework on all the parts and what they all roughly cost to make.

    #38 11 months ago
  39. backup

    powerful console to be sold at cheapest rate hell yeah

    #39 11 months ago
  40. jmg24bad

    Thats pretty good pricing for what you get.

    ps4 , a camera, a mic, and a controller . (I think you get all that)

    xbox one , kinect, controller, mic. (i would guess they include a mic)

    #40 11 months ago
  41. Keivz

    No chance they’ll be this low. No chance. In the U.S. the kinect holiday bundle currently retails at $380. That includes an XBOX 360, a kinect, and a 250 GB HDD (with two standard kinect games). You’re telling me that with kinect 2.0, twice as much HDD space, a blu-ray drive, 16x more RAM, a better GPU/CPU, and a fancier controller you’re only going to pay $20 more? They’ll both be $500 at an absolute minimum, and that’s if they’re being generous.

    Note. FWIW, the PS3 Move bundle retails for $370 here.

    #41 11 months ago
  42. NeutralBlade

    @41 I also believe both systems will be $500, as you said and I’ve also stated in the past. The current-gen systems already have bundles close to $400, and it seems unlikely these brand new systems will debut at $400 or less. I’m pretty sure any prices related to what is believed, will be tied to multi-year contracts. A $400 price point would be nice, though I’m going to wait a while before purchasing anyway.

    #42 11 months ago
  43. DrDamn

    @41
    It’s partly both going for much more sensible components and designs. It makes the old and new systems less comparable. Expect price cuts on current models at E3 too.

    #43 11 months ago
  44. azmza

    XT.V its all about T.V T.V T.V T.V Fee T.V Fee Fee T.V

    http://www.youtube.com/watch?v=KbWgUO-Rqcw

    #44 11 months ago
  45. zinc

    Well guess I’ll be keeping my PS3 for awhile. £350-400 is a little steep for me at the mo.

    #45 11 months ago
  46. reask

    Probably been already reported but I just got an email from xbox and it states that your live subscription will cover both 360 and 1.

    #46 11 months ago
  47. ps3fanboy

    Do you smell that? A shit-storm is coming.. the shitbarometer is rising.

    *Prepares for comment-storm*

    #47 11 months ago
  48. reask

    That really annoyed me in New York.
    You see the price of something and think not bad then you buy it and they add the tax on.
    At least here you pay what is marked.

    #48 11 months ago
  49. zinc

    @46, I should bloody well hope so too!

    #49 11 months ago
  50. hitnrun

    @48: It’s a matter of habitual preference, I expect. As an American, I’m used to mentally adding my state’s 6% tax to everything (except groceries) and would be inflamed if they tried to hide what the taxes really are by sneaking them back into the “value chain.” The open add-on method means they can’t raise taxes without a public debate (read: backlash).

    #50 11 months ago
  51. Anjiro

    Pachter’s ass must hurt since he keeps pulling out so much information from it…

    #51 11 months ago
  52. Telepathic.Geometry

    Keivz was spot on I think. Considering the prices of PS3, eyetoy, 360, kinect all at their larger HDD prices right now, $450 to $500 seems like the best we can hope for realistically.

    What’s your take on it Dave? Pat? Sam? Brenna? Stace?

    #52 11 months ago
  53. Digital Bamboo

    That’s true about the taxes. I failed to include them in my previous posts. In my home province, sales tax is 13%, so taking that into account there are current gen bundles that actually cost more than these guesses (Star Wars Kinect & God of War Legacy).

    Where I am now, taxes are included in the listed price, and I like that system a lot better. Then again, the Wii U hasn’t even been released here yet.

    Another thing to take into consideration is the minimum wage of each country. While console & game prices are higher in, say, Australia, the minimum wage is a hell of a lot higher than most places in the U.S., where they’re cheaper. I wrote a detailed post in the forum about this a long time ago, but I don’t think anyone read it.

    #53 11 months ago
  54. junguler

    @51 LOL +1

    #54 11 months ago