PS4 Will Be Cheaper Than Xbox One – Analyst Speculate

Buckle up! Another round of Xbox One versus Playstation 4 is headed your way.

Soon after the unveiling of Microsoft’s Xbox One and Sony’s Playstation 4, the hordes of fan-boys prepared themselves to take on any one saying anything bad about their preferred choice of gaming console. But with the passage of time, these conversations changed their course and diverted from discussion about internal architecture to their pricing.

Consumers are now more worried about what these consoles are going to offer them in terms of games. Yes, games are all we need!

And that is the sole reason everyone of us is looking forward to E3 2013 the most. Because there won’t be any unnecessary discussion about cable TV or tech-demos but actual games that are in-development. The only deciding factor which will allow consumers to select their choice of gaming console.

Another important thing that should not be overlooked is PRICE! Price is the one of the major reasons why Xbox 360 got ahead of Playstation 3 in PS3/Xbox360 era. With both of these consoles launching almost at the same time, price will definitely play a vital role.

E3 is just around the corner and Wedbush Moran’s industry analyst Michael Patcher recently gave his thoughts on what the pricing of these consoles should be. These speculations are based on the manufacturing costs of both these consoles. According to Patcher (via Wedbush Moran Report), it costs Sony around $275 to make a Playstation 4 while Xbox One costs $325.

Therefore, according to these reports, Patcher predicts that Playstation 4 will have a launching price of $349 while Xbox One may have a price tag of $399. Another thing that should be kept in mind is that these prices are for standard models.

Anyway, those who are into these things since the PS3/Xbox360 days will observe that this year the consoles war is at a much balanced playing field. Playstation 4 is is estimated to have a $150 drop as compared to Playstation 3 which had a lunching price of $499. While the Xbox One is costing $100 more than Xbox 360 which launched at $299.

It should not come as a surprise if the retailers run out of these consoles at launch because they are definitely going to sell in big numbers. Another thing that Xbox One fan-boys should keep in mind is that Microsoft will have to fight a lot harder than they already are if they intend on keeping their fan following intact.

Sony’s free online play against Microsoft’s Xbox Live has always given Sony an advantage over Xbox.

Still, Patcher tends to believe that Microsoft may offer a low-priced console:

“We believe the ability to watch live TV from a cable, telco, or satellite set-top box through Xbox One could entice an MSO [Multiple-System Operator – i.e. cable or satellite TV providers] 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.”

Even if we consider Patcher’s predictions a little close to reality, it is nearly impossible to say whether these subsidised pricing will help Microsoft shake-off the exceedingly high manufacturing costs of Xbox One. Unless both the consoles offer a nearly similar price tag.

As I said already that these consoles are not going to last even a night at the store shelves, it is also possible that retailers run out of them eventually. Although some of the gamers will be eager to get their hands on their choice of next-gen console the day they will launch; a few will definitely go for both of these consoles considering none of the accessories of current-gen consoles will work on next-gen.

And that is why pricing will play a major role in determining the future of a particular console even if the difference isn’t that much large. Hopefully, we will get all our answers at E3 next week.

Both Xbox One and Playstation 4 are scheduled to release in Holidays 2013.