Michael Pachter on $399 Xbox One Rumour: “Dumb, Dumb, Dumb”

He also doesn’t believe it, which is a big surprise.

Posted By | On 31st, Jan. 2014 Under News


If you were following the interwebs yesterday, then you’ve no doubt heard rumours of Microsoft planning a 1 TB Xbox One, one that would be priced at $399 and omit the optical disc drive. Wedbush Morgan analyst Michael Pachter has weighed in on the same in a recent industry note and needless to say, he’s not a believer.

“If this rumor is true, it is one of the dumbest ideas of all time. It would alienate GameStop and other retailers, and it would demonstrate that Microsoft can afford to release a 1TB Xbox One at $399 with essentially the same production cost as the $499 model with a 500GB HDD and a Blu-ray drive.

“That would likely cause gamers to believe that the model with a Blu-ray drive is overpriced, or would cause them to believe that Microsoft is greedy. I have three words for this idea — dumb, dumb, dumb.” Pachter also stated that Microsoft are “far from dumb. I don’t actually believe the rumor.”

Does that make it not true? We’ll find out in the coming months but Pachter does make some interesting points.

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  • Daniel Lawson

    it’s not dumb… you dump the cost of BR and increase game purchasing profitability because there is only digital download

    • Jesse Frank

      the blu-ray cost about 15$ with the blue ray royalty included, by contrast the kinect 2.0 is retailed at over 100$. In fact, knowing MS if they release the discless version, they will probably sell a disc drive later for like 50$.

  • Francis Jairam

    Guys look. Your paying $500 for a 500 GB Hard Drive Xbox One and now when they come out with a Xbox One thats $399 and completely diskless that has a 1 TB Hard Drive then you are being ripped off. If this rumor is to be true then a lot of people are going to be pissed.


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