In a preview note for investors leading up to the E3 2013, Wedbush Morgan analyst Michael Pachter suggested that Sony’s PlayStation 4 will retail for $349 while Microsoft’s Xbox One will sell for $399. He also suggested that the bill for materials used to build the PS4 was around $275 while Microsoft’s next gen console was a slightly more costly $325 (hence the higher retail price).
However, Pachter also suggested that the Xbox One could be available at subsidized rates to those who go for multi-year subscriptions.
“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.”
As of now, neither Sony nor Microsoft have announced the prices of their consoles, though predicted numbers on retail sites put both consoles at higher than $700 USD.
Source: GamesIndustry International
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