Microsoft Would Commit Suicide If Xbox Scorpio Is Priced More Than $399 – Pachter

Wedbush analyst discusses the price point for Microsoft’s next big console.

Posted By | On 03rd, Nov. 2016 Under News


xbox scorpio

For all the flak the PS4 Pro has been receiving, there’s no denying that it has an intriguing price point. $399 for what’s now the default PS4 model but with better hardware and additional visual touches to supported games isn’t all that bad. That being said, with Microsoft’s Project Scorpio aiming to deliver true native 4K and VR, how will it price its next big console?

GamingBolt spoke to Wedbush analyst Michael Pachter about a good price for the Scorpio in relation to the PS4 Pro’s $399. He ntoed that, “Well, I think Microsoft would commit suicide if it was more than $399. And the problem they will face is if they launched it at $399, the PS4 Pro might discount to $349 in the same week. So I’d be really surprised if the Scorpio was more than $399.”

That being said, this is Microsoft we’re talking about. Pachter notes that, “I was really surprised when the Xbox One launched at $499 with Kinect, and it took them a while to unbundle Kinect and drop the price. So Microsoft has not executed well this cycle as far as pricing goes. Just as Sony executed poorly with the PS3’s pricing. So Microsoft’s playing catchup, and I’m hopeful that they don’t make the same mistake with Scorpio that they did with the Xbox One.”

While $399 seems like the right price, will its hardware ultimately lead to a higher price point? We’ll find out when Project Scorpio arrives in Holiday 2017.


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  • Psionicinversion

    yes pachter there just going to give you an extra 4GB of ram and a larger APU for free and lose money on the console… slow clap. what an idiot

    • LifeOnMars

      I think Pratcher is talking sense .

    • Psionicinversion

      No he’s not it’s like saying all cars should be the same price regardless of how much it costs to make

    • LifeOnMars

      Not very many people drive a Ferrari.

    • Psionicinversion

      That’s because it doesn’t cost $399 to make!

    • LifeOnMars

      exactly you can have great fun with a Nissan without breaking the bank.

    • Psionicinversion

      only if you mod it… oh wait consoles cant do that though

    • Gamez Rule

      You can mod consoles ( just saying )

    • Psionicinversion

      well yeah you can do if you take it apart and put in your own case. shame they dont allow overclocking. put an aio water cooler on there stick some heat spreaders on the ram chips and have a fan blowing over them. that pro could easily turn into a scorpio minus the extra ram of course.

    • Gamez Rule

      I’ve modded my 360 with new fans, ( using same case ) but with a fitted window, LEDS, loads of changes☺

    • Gamez Rule

      I’ve modded my 360 with new fans, ( using same case ) but with a fitted window, LEDS, loads of changes ☺ Now no more RROD either

      https://uploads.disquscdn.com/images/d9e8eae02c34fa5e1eeac7c858b1c5f69d0cf4630d33e60a4be117d29447cf8c.jpg

    • Psionicinversion

      nice. kept with the green theme to. i dont do that to my PC in fact i dont like any light coming out of it cus its in my living room. Last thing i need when ive got the lights off watching a film is big light coming out of it distracting me.

      have you seen that snowblind panel that i think ibuypower made?? its a side panel for the NZXT 440 i think and its an active display so you can animate stuff on it even use it to view web pages and that? last i heard they are seeing if its worth making it but they probably just did it for a case show

    • Gamez Rule

      You can turn the LEDs off with remote mate☺ But kept with green theme as it’s Xbox isn’t it. I have a PS3 modded too that’s blue LEDs, but no windows fitted as yet.

      Gonna do the Xbone soon, but not sure on what I want yet…And no not heard about a snowblind panel. That one is news to me.

    • Psionicinversion

      basically its this https://youtu.be/XGqi66SxCT4

      nzxt 450 Noctis and im thinking i might buy that case for my next PC because i love the way it looks. But id get it in black.

    • Gamez Rule

      cool

    • Psionicinversion

      yeah looks cool, but is probably more of a fluff piece really haha.

      What do you think sony would say if you sent them an e-mail saying i want to rip the guts out of the Pro put it in my own case, stick a water cooler on it and stuff can you send me a custom bios to allow overclocking of the chip and i understand it voids the warranty and stuff??? i think i know what theyd say but would be worth a try. hopefully get games with an unlocked framerate and stuff. could be way higher. That is the main problem with the consoles the hardware is capable of so much more but they underclock it to fit a small pretty case and so it can be placed anywhere without overheating. remove the heat problem and your golden

    • Gamez Rule

      Just do what I do, and try mate. If it goes pop you know you made a mistake ☺

    • Psionicinversion

      you cant overclock a console apu though i dont think because you have no control. if you cant overclock theres no point making a custom case unless it drops frames/resolution because of overheating and the apu downclocks

      Btw im on chapter 12 i think of Uncharted 4 and i understand now why so many people praise naughty dog. Its pretty good now and tugs on your emotions. Think ill go and play Last of US when its UC is done cus i got so far in it and lost interest. Seem like you have to persevere until after 50% of the way through like most films to get to the good stuff.

      If squadron 42 is 75% of what UC4 is it will be a really good game

    • Gamez Rule

      Gears of war 2 ( known as lag of war 2 ) back in the day always used to have frame-drops, now since I modded the 360 I don’t have that problem at all, so I also put it down to heat build-up and console down-clocks to protect itself.

    • BelAirBoss

      Yes. Nonsense. As per Pachter’s usual.

    • JehutyFrame

      “they’re”, not “there”

    • James Hewitson

      Agreed!! people will need to be willing to pay more than $399 if they actually want good hardware.

  • They need to compete. It needs to be better and priced right and 399,- seems the sweet spot, if they want to catch sony they are just not going to make as much or any profit on their hardware, I think they realize this.

    The Xbox ons S also delivers more for less.

    • theduckofdeath

      I doubt MS will ever catch Sony this gen. Sony would have to stop selling for a while, or sell 1:2 versus MS for a few years. Maybe if they went full ColecoVision and could play all Sony discs. LOL

    • kma99

      You sound retarded

    • theduckofdeath

      OK. You sound brilliant.

      A cheap base model is the way to make up ground. Unfortunately, PS4 price is falling along with the XB1.

    • kma99

      So what does that have ti do with the Scorpio? Its better in almost every facet except price. Its a premium product so it should be priced higher.

    • theduckofdeath

      The guy I originally responded to was talking about catching Sony. To do that, they need a low cost option and more titles & features to make it attractive. Pro and Scorpio won’t outsell the standard systems, (they aren’t supposed to) not for some time.

      People are cheap, or don’t have much disposable income. Scorpio needs a strong selling point to match the price — beyond just looking better or outputting in 4K. How about all games having 1080p 60fps locked mode? The masses have 1080p sets and even a cheap 4K set will cost them as much as Pro or Scorpio. Most of those people just get by with most practical option.

    • kma99

      Why does it need a selling point its not tailored for everyone. They have base models of the ps4 and xbox so if you are a casual they are geared towards your taste. The hardcore and fanboys are what the high end models are aiming at, casuals dont care thry want the cheapest box available.
      The Scorpio will have the latest tech so why should we expect this bottom dollar price? It shouldn’t break thr bank but i don’t expect it to be dirt cheap.
      Also the console doesn’t launch for almost a year if you cant save up or at lease reserve one and pay in installment then you are doing something wrong. Gaming is expensive enough as is.

    • Mr Xrat

      Another amazing counter-argument from yet another salty r3tard.

    • kma99

      Salty over what? You and your 300 accounts

    • Mark

      Agreed. They’ll never catch the PS4. But I don’t think they have to. I think they’re sorta rebranding themselves as the hardcore gaming system to play on, in terms of power. And I think they’re hoping this carries on into next gen, so they can reset, and have the upper hand next time.

    • theduckofdeath

      Exactly. Both systems are sell, and one console or the other was going to be number two this gen. Just keep moving systems and software, narrowing the gap in the process. MS has been working on improving the brand and regaining much of the confidence and enthusiasm lost at XB1 don’t have much choice, IMO, but to re-position as the more powerful, feature-rich console moving forward. That is how I have always thought of XBOX.

    • Gamez Rule

      Both Sony and MS have been working on improving their brands while regaining the confidence and enthusiasm lost by poor choices etc. But IMO Sony have just shown better support for the gamer this gen when compared to what MS has offered.

      Sony have allowed people the PS4 / PS4-Slim / PS4-Pro / PSVR / PS-Vita while MS have only offered Xbox-One / Xbox-S ( Scorpio not hardware as yet )

      By the time MS offers Scorpio to the public I believe Sony will not be far behind with releasing a next gen console.

    • Mark

      Yup. But now, they have this 4K Bluray issue with the S model I’m hearing about…..they absolutely cannot afford another RROD Situation! Better get those things fixdd

    • theduckofdeath

      I wasn’t aware of an issue with the S and Blu-ray. Let’s hope there’s an easy fix.

  • DA-ROOSTER

    The Xbox Scorpio will have a next-gen GPU and CPU plus 12G of ram so launching at $399 will be financial suicide for Microsoft
    Microsoft should launch the Xbox Scorpio with a 1TB HDD at $500 and bigger HDD priced higher this is more reasonable

    • Andy Maas

      No it wouldn’t if they priced between $500 to $600 it would fail phill spencer said that the Scorpio will be cheaper than the Xbox1 when it launched

    • Ryuken13

      Yup. I agree. Scorpio at a lower price is cutting corners, selling at a loss, or would have to be made in vast quantities (flood supply chain to get volume discounts on parts). Any of these moves would suck..

      As usual Pachter is full of it lol.

      Remember the RROD?? Still wanna cheap premium Microsoft console??

    • Gamez Rule

      “phill spencer said that the Scorpio will be cheaper than the Xbox1 when it launched”??

      Really?

    • Mr Xrat

      And your precious Phil is already talking down your hyped “true native super duper 4K” difference, Kirk. Looks like you’ll be paying $499 for not much difference and its replacement in just over two years. MS is utterly clueless, just like its r3tard fanbase.

  • Riggybro

    $399 is doable in 2017/2018

    It depends what else is going into the box though:

    Will it be another cheapy CPU or something a bit more high end?

    Will it be another slow HDD 5400-7200rpm or a SSD?

    Will it be GDDR5 RAM or something new (or even split ddr4 + ggr5 like a PC?)

    If they go for a combination of cheap plus say a medium splurge on the CPU $399 looks good to me.

    Like I’ve said before 6TF is not bleeding edge for 2017/2018.. so $399 is not crazy talk.

    • theduckofdeath

      Zen and Vega will be around by Jan/Feb. That CPU/GPU combo is conceivably want will go into Scorpio. What would be lower end offerings to the PC market would more than adequate for the rumored specs.

      Most likely GDDR5 for the memory, as the quoted throughput is around 320 Gbps. The question is, will they need or out to include embedded RAM for compatibility. The block in the XB1 APU occupies as much space as the GPU.

    • Mark

      Phil did say it’ll be “balanced”, so I don’t think they’re gonna go cheap on parts at all. I’m guessing $400-$500

  • Note5
    • kma99

      Really. I think you are a liar?

    • Note5

      You think against historicsl documented facts?

    • kma99

      Who made broadband mandatory? Who was thr first with internal hard drive? Please tell me who that was. I could go on for days but you will start your damage control next. Link me to these historic documents

    • jp

      MS brought modern gaming to life with the Xbox 360, anyone not accepting that fact is a fanboy.

    • kma99

      Im fully aware of that. All of these companies bring forth innovation that help shape the games we enjoy. You have these fanatical sony fanboys who can’t stand it when sony doesn’t do everything first.

    • Note5

      LOL! Okay I will do the research for you.

      HDDs are a type of non-volatile memory, retaining stored data even when powered off.
      Introduced by IBM in 1956,HDDs became the dominant secondary storage device for general-purpose computers by the early 1960s.
      https://en.wikipedia.org/wiki/Hard_disk_drive

      PS2 HDD
      The PlayStation 2 Hard Disk Drive (PS2 HDD) was released on July 19, 2001 in Japan (together with the Network Adaptor)

      Xbox HDD?
      The Xbox is a home video game console and the first installment in the Xbox series of consoles manufactured by Microsoft. It was released on November 15, 2001.

      PlayStation 2 Online Functionality
      Selected games on Sony’s PlayStation 2 video game console offer online gaming or other online capabilities. Games that enable the feature provide free online play through the use of a broadband internet connection and a PlayStation 2 Network Adaptor. Since the service has no official name, it is sometimes referred as either PS2 Network Play, PS2 Network Gaming, or PS2 Online.
      The service was launched in July 2001 in Japan,

      So yeah that is the truth.

    • kma99

      Lol wow you really tried hard didnt you. IBM wasnt the first to make a computer so get your facts straight. Do you want me to pull out the sega card ti trump your sony love fest. Lol

    • Note5

      Boo Hoo!
      Trying hard?How is copy pasting the truth that “trying hard”
      Well it’s definitely not Microsoft or Nintendo.

    • kma99

      Sounds desperate that u had to go google that. Should i copy and paste the many feats of your lord and savior Sony Christ? Nahhh skip that i dont want to make you cry

    • Note5

      Is there something I need to know about the PlayStation?
      Please help.

    • kma99

      Yes. You shouldn’t sacrifice sheep while praying to your lord and savior Sony Christ.

    • Note5

      I am an appreciator of what I deem best for my preferences not particularly Sony. I am a fan of Samsung, Apple, Google Android too because they serve my interests.
      Used to be a huge PlayStation hater btw when I was Sega fanboy. But we all know how Sega imploded from within. Still a Sega-of-Old fan.

    • Note5

      and don’t get me started with Sega. I am the Premier Sega Genesis Fanboy of All Time. LOL!

    • Note5

      Like Microsoft, I think you are a reactionary person too based on your comment. Search the truth yourself about Xbox history.

    • kma99

      Lol who are you now morpheus? I dont need ti search anything. You claim something but wont show proof. I gave you valid counterpoints so you need to do a little research before you talk. Lolllllll

    • Kendall Riley

      I searched the truth. You are wrong.

    • Luke Skywalker

      and the playstation was what to Nintendo and Sega’s consoles?

    • Note5

      LOL!
      The original Nintendo Play Station by Nintendo was a reactionary add-on console to compete the Mega CD add-on by Sega which was a reactionary add-on console to the PC Engine Duo (TurboGrafx 16) CD-ROM2 add-on console by NEC.

      And the interesting fact about all this CD-ROM stuff is Sony is helped them make them all. LOL!

  • LDS

    If it’s got better CPU than Jaguar crap, $499 would still make sense given that it’s more powerful than pro and features 4K ODD.

    • Mark

      U know, their CPU decision will be huge. I honestly feel if they get Zen, Scorpio will be able to run most single player games at 1080p/60fps or 1440p/60. Phil did say it’ll be balanced, so I think that eliminates a Jaguar that bottlenecks things, and Zen should allow the Vega GPU to sing. S’what I think will happen

    • LDS

      It’s been almost confirmed that the chance of Zen for Scorpio is less likely because Zen comes out after Scorpio is released.

    • Mark

      Ok but how can that dam thing be balanced then, using the same Jaguar CPU? Why would Phil call it balanced, when clearly that same old CPU is the weak link. I don’t kmow man, I’m still hoping for Zen lol

    • LDS

      There’s another CPU before the Zen other than Jaguar
      I forgot the name of it but it should certainly be better than Jaguar. All that aside, Jaguar wasn’t meant for gaming when it was first built so whatever they throw in, it will just be better.

  • BelAirBoss

    There goes Pachter, sniffing that glue again. Native 4k, if they indeed hit their target, is not going to come cheap old man. 399 would mean they are cutting corners somewhere, either with the cpu or storage, and that isn’t how they’re talking about Scorpio. They seem to want to build a beast, and a beast will cost.

  • James Hewitson

    I think this just proves that console gamers are cheapskates that want powerful hardware but are not willing to pay for it, If you want good hardware then you’ll need to be willing to spend some money simple as that.I hope Microsoft charges what the thing is worth (if it’s good).

    • Troy Marcel

      Not true there are games like my self are willing to pay for top notch hardware

    • Mark

      Me too!

    • James Hewitson

      Yes you are correct but unfortunately people like you and I are in the minority.

  • Barry Harden

    $399US is impossible for Micro$oft unless the shareholders are willing to take a DEEP loss for the year. lol

    Judging by how M$ prices its products like the Surface book, they’ll introduce the Scorpio at $599US.

    • Psionicinversion

      if they priced the xbox like the surface book it would be $1200. different product different market

  • Allandor

    it is premium hardware, so I will gladly pay a premium price.
    I would have payed more for PS4 Pro, but sony decided to scrap every “premium” feature from it (like UHD BR playback). 399 is not premium, it is an average price point.

    • Mark

      That’s a bit how I feel

  • Mr Xrat

    $399 for a 250GB hard drive
    $499 for 500GB
    $599 for 1TB
    $699 for 2TB

    Book it.

    Xbox won LOL

    • Luke Skywalker

      So 399 for the base model with external hard drive support? Sounds like a win to me.

    • Mr Xrat

      Then your external crashes. Whoops!

    • Luke Skywalker

      That doesn’t even make sense because that would mean drives on any console and any system could crash. But even if that’s the case that’s no problem, simply use another external.

    • jp

      a 4K console with 250GB of HD? you must be joking, the Xbox Elite console has 1 TB of HSD (Hybrid), we cant expect less than 1 TB from the Scorpio.

      damage control like always, must be pretty sad giving yourself those same 10 likes everyday…

    • Mr Xrat

      It’s called cost-cutting, it’s what they’ll have to do to get the Shitpio out without incurring a loss. They won’t be doing that after Nokia.

    • jp

      Thats called a “4K console” without UHD drive…. hahahaha talk about cost cutting buddy, youll drown in your own words…

    • Tga215

      More ghost accounts?

  • jp

    PC with the same specs would cost aroun 800 to 1000 dlls, so Scorpio being 500 dlls its pretty great for me!

  • Alistein

    Can we get other analysts. This guy can’t seem to comprehend the industry everything he says always almost end up dead wrong.

  • Reclaimer13

    At $400 ms is probably gonna take a huge loss. I’m guessing it’s gonna be $500 at launch. But priced $100 more than the pro you’re essentially getting 3 products in 1. Not to mention spec-wise the scorpio a vastly superior product.

  • Eddie Battikha

    $499 I would think, we’ll see what happens.


 

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