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Pachter: Xbox One & PS4 to launch below $400; price cuts imminent

pachter

The gaming industry’s most loved-to-be-hated analyst is at it again, this time with predictions for launch prices for Microsoft and Sony’s next-gen consoles. Pachter says the PlayStation 4 will launch for $349, while the Xbox One will launch for $399. This is much lower than many people predicted for these consoles, so a lower barrier to entry could mean greater adoption of these consoles. As Pachter stated, the $599 debut of the PS3 “negatively impacted its long-term popularity.”

Currently available consoles are also expected to see price cuts according to Pachter. Both the PS3 and the Xbox 360 could drop as low as $199, while the Wii will be just $99. As for the Wii U, Pachter says that Nintendo could contemplate a price cut or a bundle that will include more of the Wii U’s popular software. In a final statement, Pachter says the PS Vita will likely see a price cut, too.

It’s interesting to note that Pachter has not released any predictions for the future of these consoles yet as he did the Wii U upon its unveiling, though we expect to see more of that after E3 next week.

 

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  • http://4812cpvideos.webs.com/ Zack4812

    Does that mean Wii U has to have a price cut?

    • val berger

      Sooner or later yes. 400 bucks for those systems would be very cheap and would Nintendo force to do anything, whether they like it or not.

      • Guest No. 3

        However, whether or not what Patcher says is true has yet to be forseen. I could see Xbone, but if PS4 and Xbone are as vastly more powerful then the Wii U like some people claim, there’s absolutely no way They’ll keep under $400.

      • Nothing5555

        I could see the Xbox priced around ~300 if it is subsidized. As for the PS4 the lowest I predict would be 449.

    • Magnus Eriksson

      Maybe not? It still got a fairly good competetive price I think. At least if you operates with the 50$ price cuts we have seen.

  • Arsonist Monkey

    Why is the Xbox One listed on Amazon.uk as £599?

    • val berger

      Amazon always writes the higher price, as long as they don’t know, because it would be a bigger disappointment if the price rises, than when it falls.
      My Pikmin Preorder there is also listet for 70 euros which I know won’t be happening as Nintendo usually isn’t selling their own games for such a high price.

      • Arsonist Monkey

        Okay

  • iceazeama

    that just means its going to be over 400$

    • Nintedward

      What an effing spud he is. The Wiiu was $350 for the deluxe…. PS4 will be $500 at least i’m saying.

      • Clel

        My guess would be $450.

        • Josiah Parsons

          same

      • Levi Johansen

        If the PS4 is sold for such a price ($350) then the Wii U will have a price cut. Atleast he is right about that.

        Sony is not making much money, and they will not be throwing away billions just to get the system out there. They actually lost money on the PS3 dispite the high price…. o_O

        • Nintedward

          At launch the ps3 cost $800 to manufacture and was being sold for $600 . AKA a disaster…

          • Elem187

            Sony wont be able to eat a large chunk of the costs on the PS4 (Sony is in bad bad shape. They will need to sell the system as close to cost as possible)
            Judging by the parts, and giving a discount in there for mass purchase of parts, I’m going to guess the cost to build it is in the 450-600 range… 8gb of gDDR5 ain’t going to be cheap. But with manufacturing costs of putting all these parts together, we are looking at $600 cost all together out the door (lets include R&D costs into that figure)
            With Sony’s legendary money problems, how much you think they can eat on a per console basis? My guess is no more than 100$… even $100 is probably too steep for Sony to eat this go around, with them being on the edge of financial doom.

          • Chris Hamilton

            legendary money problems lmao Sony has $10 billion in cash reserve and $150 billion in assets. Yikes they really are on the edge of financial doom.
            yes sony has had a few tough years but at the same time their play station division has always been turning a profit so I don’t see them changing their strategy now.
            nintendo is even better off and could report losses for decades and still be a billion dollar company.
            my prediction is ps4 $399 and wii u $249 and I could care less about xbone due to its always on, no used games garbage

          • Nintedward

            You don’t know what you’re talking about. Playstation has always been turning a profit ? no it hasn’t. Infact they were losing unprecedented amounts of money with the PS3 for 2-3 years straight , starting off with $200 loss per console sold.

            Sony have been in the red for the best part of a decade now.

          • Chris Hamilton

            no sir you don’t know what you’re talking about. Yes they take A loss on the consoles but they make that up in software sales. The playstation division overall has always turned a profit, sony may have been in the red for a few years but it is not due to the PS department.

            what do you think ,people buy a PS but never buy games for it lol.if you want to be closed minded about it then yes the PS department takes some losses every time sony launches a new product, but they more than make up those losses in software sales

          • Bob Charlie

            Even if they break even and do what Nintendo did with the U and sell the PS4 at cost the damn thing is still, at the very least, going to cost $450. Assuming PS4 isn’t bundled with a game, then you need to consider adding $60 to the console price.
            Off the top of mah’ dread, I believe the most expensive PS3 is going for $300 now and it’s a 7-year old system, so the high end PS4 will be way over the $300 mark. Just making a statement, not disagreeing wit’ anybody here. We will find out on Tuesday the prices (hopefully). :D

          • Chris Hamilton

            true I said I predict a $399 price , but I also wouldn’t be surprised at a $499 price.
            the current price of a ps3 doesn’t mean much as they are being sold at a profit where as the ps4 will most likely be sold at a loss

          • Bob Charlie

            Deluxe sold at $350 and no profit was made until a game was purchased, yet this guy thinks PS4 and Xbone will be around $400?
            Me thinks he got a hold of some of mah bad weed, ‘mon!

          • Nintedward

            lol! You keep tokin up dat erb! Ya rastafarai erbalist!

          • Bob Charlie

            :D Lota’ mercy!
            I think Pachter be smokin’ the same stuff that makes lil’ Mac look transparent to me, ‘mon!

  • Magnus Eriksson

    Is that so? I believe to have read that he thinks XBox will be this generations winner, and Wii U its looser. However, in the same article Pachter talks about the Wii U as a first party console. WiiUDaily should maybe evolve on that? Is that necessarly a bad thing if they did? If there is anyone who could do such a run it must be Nintendo. U in Wii U could stand for Ultimate. The ultimate console.

    • RockGod

      Sadly Magnus, this is far from the first time that Nintendo has been shunned by 3rd party devs. You could consider the N64 & GCN as mostly 1st party consoles even though they did have some quality 3rd party games on those systems as well. It Seems the only 3rd parties neglecting Wii U are ones deeply engrossed in the competing machines.
      Nintendo finds a way to survive every time though and sometimes they absolutely thrive like with the Wii. In my opinion Wii U is the best console ever released, once more big games are released I believe it will sell much better.
      I do think when the other consoles are released Nintendo will THEN drop the price of Wii U and that will probably seal the deal for a lot of holdout purchasers.

  • http://www.w-o-n.org/ GoldDreams

    I’m sorry but $399 does not count as under $400 to me. Aren’t they forgetting sales tax again?

    • Denvy

      Sales tax is not going to the company, therefore is not included in the MSRP. A penny under $400 is still technically under and can be advertised as such.

      • http://www.w-o-n.org/ GoldDreams

        A single penny does not count as under $400 to anyone except the idiots trying to sell one.

        • http://about.me/overlordror Ashley King

          Welcome to the world of advertising, where “under $400 means $399″ and “virtually spot-free” means your cleaning product doesn’t actually have to do its job.

          That sort of doublespeak is there for a reason, it’s the consumers job to see through the marketing buzzwords.

        • Alestar

          It is called psychological pricing.

  • val berger

    Soon we will all know for sure. No point in crying about predictions. If things are turning out the Pachter way, then Nintendo needs to act fast. If not … well … then not.

  • http://www.w-o-n.org/ GoldDreams

    It wouldn’t matter to me if someone was trying to give me either PS4 or the Xbone for free. I still wouldn’t take it.

    • D.M.T

      Take it and sell it to a Sony or MS fanboy and buy Wii U games with that money

    • Magnus Eriksson

      Oh yes We would precious, yes we would.

      …or actually, i do not care about the xbox to much. It seems boring, and Im really not a TV guy. But I might pick up PS4 eventually just to play the other games that wont come on Wii U.

  • Guest No. 3

    I could indeed see the Xbone being cheap because you’ll make up for it later with the constant online/pay for how many people are in the room/no used game scams.

    • Andreas Sunde

      Don’t forget the ads.

  • incoherent1

    Well, given Pachter’s track record, that pretty much confirms that the PS4 and XBone will both be well above $400. :)

    • https://www.facebook.com/BlueLightningTechnicalServices Bob Wilkerson

      No they will release console with a subscription fee under that price like cell phones do under contract and he will say he is right. I think there was already a rumor about a version of the XB One coming in at $299 with a monthly fee other than XB Live

      • http://www.facebook.com/people/Chris-Bingham/100000260255063 Chris Bingham

        Xbox One might have a subscription but I think the PS4 might just have one off fee and you just have the console. Knowing Sony the PS4 might be about $380 while the Xbox One will go for $300 for the rental model (if there is one) and $370 for the full system.

        Wii U is still going to be cheaper, regardless of what Patcher says. The twat is probably going to get an Xbox One.

        • that guy

          yeah about that 380$ price mark… they’re throwing in 8 gigs of DDR5 which won’t be cheap as it is new tech even for PCs.

      • Elem187

        Subscription ?!?! BWAHAha

        Any gamer that buys into a CONTRACT for their console is in the words of bugs bunny is a MAROON.

        I’ll stick with PC/Wii U/3DS this gen and be perfectly happy.

        • Mochlum

          I think the three people who DO buy an Xbone will probably pay enough fees to make up for everyone else who is skipping it.

          • sdmac200600

            lol Xbone the next vita XD

          • Stephen Dorn

            Want a new Xbone?

            No thanks.

            Its free…

            okay

            hahaha!!! now you are bound by contract to pay me a ludicrously high fee daily for the next 200 years!

            NOOOOOOOO!!!!

    • mikel334u2

      I’m predicting about $400 – $450 for both consoles. The current generation console price cuts are pretty accurate, though. For the Wii U, I predict a price cut to $250 for the Wii U (deluxe).

  • AAAkabob

    Lol neither company wants to sell their systems at a loss. Patcher is once again a moron and the only correct thing he said is about the Vita, and price cuts.

  • D.M.T

    How did Michael Pachter become an analyst? I can’t believe someone like him is getting paid to make silly predictions.

    -This dude actually believes that the PS4 will be 350 dollars. Every PS4 will be sold at a loss if they do this and that’s not good for Sony.

    – I can see Xbox One being more expensive than PS4 but it won’t be 400 dollars. I believe that an all-in-one console will be more expensive than that.

    The reason why Pachter is not predicting the future of the consoles is because he doesn’t want to say or admit that Wii U will be more success than the Xbox One.

    • MTGSWE

      Everything will be a bigger sucess than Xbox One :P The twitter war clearly shows that ps4 is bigger right now than xbox one.
      http://www.gamespot.com/twitter-battle/xbox-vs-ps4/

      • Jon

        I like how Saudi Arabia has more votes then the US. lol

    • ronin4life

      He did make predictions for one and ps4: That they would trounce wiiu and sell even better than this gen.

      That was Months ago… He also strongly believed MS wouldn’t touch the used industry, That Zynga wouldn’t fail, etc.

      He is a moron. These machines only have 1 shot of being this cheap: and that is if they come with hideous mandatory subscriptions.

      • D.M.T

        I mean predict the PS4 and One after the Xbox One reveal but he did make a prediction. He thinks Xbox One will outsell the Wii U. He’s an idiot

    • herz

      let’s look at their current consoles to get an idea.

      XBOX 360 4GB console w/Kinect still retails for 299.99. The Kinect v.2 is much more sophisticated then the kinect v.1 so that will add atleast $50. The XBone also comes standard with 500 GB (which only makes sense b/c you HAVE to install the games to the harddrive) storage is cheaper now so say another $35. It is going from 3 core processor to 8 core, 512 mb ram to 8 GB ram and customdvd to bluray. Now if it’s to be believed that all these added features will come in at only adding $100 then you must accept one of two options. Either the current XBOX 360 is being sold way overprice or Microsoft is going to sell the One at one heck of a loss.

      PS3 w/ 250GB drive is around $250. Going from a combined 512 mb of ddr3 generation to 8 GB of ddr5 generation (which is pretty new and still quite expensive on it’s own). This is also going to have an 8 core processor but going from the cell processor i’m not sure how the cost analysis would go for that. Point being the upgrade in ram alone should be more than a $100 jump in cost. Once again PS3 is either way overpriced or PS4 being sold at a big loss.

      This is just my personal opinion though

      • D.M.T

        I agree with everything you said. Pachter has no idea what he’s talking about

      • Doctors Tardis

        Honestly the only hope I have of him being right is if they subsidize the price. For example, I can go pick up a brand new 360 for $99, but then have to pay a larger monthly xbox live fee.

        • herz

          i think that could be possible but it’d be a stretch imho

      • 150Db

        A little of both: Currently the PS3 and 360 are definitely overpriced, generating profits for those companies. The new systems, like Nintendo’s, will also certainly be sold at a loss. That reduces the difference in prices between the generations. In Canada, I usually see the 4gb xbox for 200$, and I expect that to drop to $150 this fall. The XB1 will be twice that price, even with a 2-year contract of some kind. PS3s are currently 250$, will drop to 200, PS4 will be double that.

        I’d say Pachter’s predictions make sense this time. XB1 = 300 with contract / 450 without; PS4 = 400.

  • Wanderlei

    I swear Patcher is a Sony shill they secretly pay behind the scenes so the gaming media can spout ‘analyst’ says Nintendo is doomed and Sony will sell 100 million of every console they launch.

  • Magnus Eriksson

    I have a deep and sincere respect for this man. Long has he forseen Nintendo failing. And everything is just happening as he predicted. He knew that Nintendo would make us all unhappy with this piece of old tech plastic gimmick, and that Nintendo would keep on following an outdated formula. This, together with lacking competence, would make Nintendo unable to take a racing place this generation and therefore trying to combat the two winners of last generation, PS3 and XBox360 instead. But even to the powers of tose old mastodonts Nintendo couldnt stand a chance…

    …actually, im just joking. I think Pachter should stop making predictions about videogames and continue over to a different market. Maybe reviewing APPs for mobile phones or packing pads and tables in boxes at some random company.

    • Clel

      Dammit Magnus, you keep getting me XD

    • Vextrum

      You, good sir, make the most frightening jokes I have ever heard. I respect that.

    • Nintenjoe82

      I would have agreed with you but I’m pretty sure that the Wii U starting coming off the rails when Pachter announced that Nintendo would meet their targets set at launch.

      When asked why he predicted so much higher sales than the actual figures, Pachter’s response was “because Iwata said so”.

    • Tecpedz94

      I was about to go crazy on you lmao!! Good thing u where kidding

    • Josiah Parsons

      that was WAYYYYYY too realistic. I was wondering why it was top post, but now I know…

    • Alex

      Oh man you got me hahaha, your very good at making jokes.

  • Petri

    Pachter been eating wrong kinds of mushrooms?

    PS4 releasing at 350 is daydreaming.

    Also Xbox releasing more expensive than PS4, would just be a One more nail to its coffin.

  • JVAN63

    What a genius. The Wii Mini was announced 6 months ago at $99, http://wiiudaily.com/2012/11/wii-mini-is-official-new-wii-retails-at-99/

    and the Wii “standard” only needs to drop $30 to hit that price. http://www.bestbuy.com/site/Nintendo+-+Nintendo+Wii+Console+%28Black%29+with+Wii+Sports+and+Wii+Sports+Resort/6900242.p?id=1218812709374&skuId=6900242&ref=06&loc=01&ci_src=14110944&ci_sku=6900242&extensionType={adtype}:{network}&s_kwcid=PTC!pla!{keyword}!{matchtype}!{adwords_producttargetid}!{network}!{ifmobile:M}!{creative}&kpid=6900242&k_clickid=57fe46bf-fdf4-b429-4a40-000062bafd14

    He’s obviously targeting investors, and not anyone who plays games or watches prices.

  • https://www.facebook.com/BlueLightningTechnicalServices Bob Wilkerson

    So what happens if he is wrong again? From the information I have read from this guy he is wrong way more than he is right. Seems like he is a failure at analyzing the market but yet keeps his job because he gets page clicks and attention based on his negativity.

    • http://about.me/overlordror Ashley King

      Nothing happens if he’s wrong. He’s just one guy giving his opinion to try and help investors rake in money from corporations.

      • https://www.facebook.com/BlueLightningTechnicalServices Bob Wilkerson

        Which is why he keeps his job… He strives on being negative and argumentative which gets page clicks and attention.

  • TheyCallMeDan

    Why are we listening to Pachter anyway? Stop reporting on him Wii U Daily!

    The most I can see the Xbone and PS4 price wise is $449.99 (which is close to £300 in Britain, that’s how much a new console usually costs over here anyway). Pachter is delusional and he’s biased towards Microsoft anyway.

    • http://about.me/overlordror Ashley King

      Regardless of what you want, he’s an industry figurehead because of what he says. If he praised the Wii U more, you wouldn’t mind seeing these things here. I report the news and Pachter happens to be in that news.

      Nothing negative was said about the Wii U so there’s no reason to get upset over this anyway.

      • TheyCallMeDan

        Fair point.

      • https://www.facebook.com/BlueLightningTechnicalServices Bob Wilkerson

        It’s not about praise so much as it is about facts. Facts is something he knows nothing about it seems.

        • http://about.me/overlordror Ashley King

          When it comes to predicting the stock market, nothing can be stated as a fact until it’s in the past tense.

          • https://www.facebook.com/BlueLightningTechnicalServices Bob Wilkerson

            While that is true he often has little evidence to support his claims and shows his bias and immaturity quite a bit by his evident name calling and argumentative approach to how he analyzes the market. You can make predictions based on historical facts and current states of the economy and industries which he rarely does.

      • HypocritesRROD

        For such an industry figurehead, pachter talks so much like an xbox fanboy, let alone a nintendo-hater(which everybody knows buy now). Only gullible people won’t see through this hypocrites’ lies.

  • bizzy gie

    He did give a prediction for future of these consoles.

    At least that’s what I interpreted from this:

    Pachter on Wii U: “If the Wii U’s popularity does not improve by the end of the year, many third-party publishers may pass on producing games for the console. We note that EA recently announced that it had no Wii U games in development, and it remains a possibility that the publisher will abandon the platform entirely. Should other third parties follow EA’s lead, the Wii U could be relegated to a first party only platform.”

    Pachter again: “We continue to believe that Nintendo misfired with the Wii U, and believe that the next-generation of consoles will see a market share shift from Nintendo platforms to Microsoft and Sony platforms. In the aggregate, we think that the installed base of next-generation of home consoles at a similar point in the cycle will be smaller than the current generation, likely by 10-20%. However, the composition will be much different, with Sony and Microsoft each selling 85- 100 million home consoles (compared to approximately 75 million each in the current cycle) and Nintendo selling 50 million or fewer (compared to approximately 100 million in the current cycle). The 50 million decline in our forecast for Nintendo’s home console installed base reflects defections of more non-traditional gamers to social and mobile games. Should third parties follow EA’s lead and abandon the Wii U, it is likely that many Wii U households will purchase a next-generation console from Microsoft or Sony in addition to their Nintendo consoles, driving the installed base for “hard core” consoles to 220 million or higher.”

    Pachter’s Final Statement: “We continue to expect handheld hardware sales to decline over the next few years, as many non-traditional gamers consider smartphone and tablet games a perfect substitute for casual games played on dedicated handheld hardware. While we believe this news is bad for third-party game publishers focused on the Nintendo 3DS, there are few publishers remaining who are focused in any meaningful way on the 3DS.”

    This should also give newcomers a general synopsis of the man who’s making the stupidest price prediction possible.

    • D.M.T

      So he said Xbox One will outsell the Wii U? Really? Really?

      Maybe in the United States it will outsell Wii U because Americans will watch TV on their TV and play stupid Kinect games but it won’t do well outside of the U.S.

      This dude is not an analyst, he’s being paid to troll lol.

  • https://twitter.com/Onyzora Ony

    Yeah I don’t really understand why Sony and Microsoft would sell they console with more expensive material than Wii U to an equal price as Wii U.

    That don’t make sense, unless these companies wants to drool…

    • DemonRoach

      cut out the 100$ gamepad, andyou have 60 bucks more to spend on hardware. There is no need for a huge price spike compared to U.

  • Ernie Sanguyo

    $349 only for ps4 are you serious? Wow when ps3 was barely out it was 599 and thats low hard drive so i doubt it’s going to be that low.

    • DemonRoach

      ps3 was state of the art at the time, now it just has good hardware. Hard to imagine because Wii U has 5 year old software in it.

      • phaedruss

        5 year old software? lol get a grip.

    • Doctors Tardis

      And because of that high price point, it didn’t sell. Sony won’t make the same mistake twice.

      • Rey Hardy

        They did make the same mistake twice its called the Vita….PS4 will be the same mistake for a 3rd time.

  • Jack5221

    This patcher guy seriously has no idea what he is talking about. While there is no confirmed price point for PS4 / Xbone, theres no way both consoles will go for 400$ or less. A bare minimum price for either of them would be between 450$ and 600$.

  • DemonRoach

    My prediction. Sony ties with Nintendo in Japan. Sony/Micro tie in Euro. Micro Win North America.

    • ronin4life

      I don’t see MS wining NA so easily with an onlne mandatory console and the horrible internet here in many parts of the country… and if the Vita is any indication, Sony may have trouble in Japan too.

      Japan is a Handheld first country, and sales indicate people still prefer the aging ps3 to the Vita… that is hardly a good sign.

  • MTGSWE

    I belive it when I see it :P

  • Guest

    That guy has said 200 thinks or more and like only 2% happened lolz

  • John Andalora

    I don’t believe Pachter on this one.
    I suspect Xbox One will be $450-500, and PS4 will be $400-450.
    As for Wii U price cuts, I’d suspect by next year, but later rather than sooner.

  • Erik

    less than $400? Considering that you put in High End specs and all… im saying its MORE than said price.

    • Daniel Gonzalez

      I’m thinking more between $450-$600.

  • Justin Carlson

    I think the XBox One could even be as low as $350, but only with a two year XBox Live agreement.

  • Clel

    In other words:

    “As Michael Pachter has had an astonishing amount of accurate and completely correct predictions in May, he will continue with his perfect predictions in June.”

  • https://twitter.com/Zorpix_Fang Zorpix

    bullllllll craaaaaap

  • Agent721

    I hope theyre below $400, because anything more is simply too much. I love the Wii U, but I also want a new Uncharted!!! In the meantime, I cant wait for The Last of Us!!

    • herz

      I never really got into the Uncharted series. It always felt more like an interactive movie to me. Granted the game was beautiful and i look forward to seeing what it’ll look like on the PS4. I just never could get into the gameplay and finishing them felt more like a chore. I guess it’s just not style of game. But I would like to see the PS4 be reasonably priced especially if games like Dark Souls and Last Guardian aren’t going to end up on my Wii U but i just don’t see it happening for a few years.

      • Agent721

        I love it because it plays like a movie! And it reminds me of Indiana Jones. But we can all have different tastes & still enjoy the big world that is gaming. This is why those who troll th e Wii U are so annoying…people have diffeent tastes, and thats quite alright!!!

  • lonewolf88

    considering there going to sell the ps4 at a loss this is pretty much completely wrong.
    500-600 dollar price tag anyone?

    prepare for the MEGATONS………..

  • Gabe Hoffman

    Does Pachter even realize how Sony has been bleeding money left, right and center, How on earth could Sony sell PS4 at 350 dollars without losing even more money? They are in no financial shape to do so. Most reports have put Xbox One at 500 dollars also. Sony can’t really take selling at a huge loss

  • Stephen Davis

    Theres no way. Its like saying I am going to take the best from a mid to high end pc and sell just the gaming gpu and cpu for under 500 bucks, oh yea lets not forget I also include a blu ray player, 70 dollar controller with it too. And maybe a game to have something to play. YEA OK. It doesn’t take an analyst to see that this analyst is dreaming. BIG TIME! He along with others are hoping thats what it is. But those parts do not come cheap, and majority has to get passed onto the consumer. Unless they charge the heck out of games or pass fees elsewhere its not gonna come anywhere near there. (499 at the lowest)

  • boynhisblobs

    This guy is always wrong, so much so there’s almost no creditability left in his words. He said this generation of consoles would never come first off. He also said the Kinnect was going to launch for just $50, that didn’t happen.

    Really doubt that price point, don’t think either company would make profits off a $400 or less console. $499 or higher is practically a guarantee.

  • plsburydoughboy

    Without bias, let’s look at what such a move would actually entail. Those prices would mean the consoles would be sold at a loss. Microsoft can afford to do that, but not Sony.

    Microsoft’s finances are in order, and they have several potential income streams with the Xbox One (Xbox Live first in line, but also TV content, Kinect applications, retail games, and possibly used games.)

    Sony, on the other hand, just got out of a decade old rut. Considering the chicanery the Playstation staff pulled off last time (making tech prohibitively expensive without management’s knowledge) and the consequences (seriously they still haven’t made their money back off the PS3) they will want next generation to be less expensive for them.

    My point here is Pachter is doing these companies, especially Sony, a disservice by setting expectations so high. Sony can’t really splurge for consumers the way they did last gen, making fans expect more of the same is irrational. Either the PS4 will cost way too much, or they price it low and make the games expensive, or they try to make their own paid Xbox Live service, or they decide to hell with all this goodwill and do everything I mentioned above because they need to make a profit this time.

    Microsoft might be able to take a loss on each Xbox One unit sold, but I doubt they’ll lower it as much as Pachter suggested they would. They expect nongamers to want this system too. Frankly, Xbox One has a big problem now with miscommunication, and I think that precedes any talk of price, although if they price it what it really cost Microsoft fans will definitely rebel even more.

    Where does Nintendo stand in all this? Not exactly waiting in the wings, if you ask me. Sony and Microsoft’s loss is not necessarily Nintendo’s gain, as anyone who looks at industry sales with an open mind can tell you. Sony and MS fans are currently falling over each other talking about whether PS3 or 360 can catch up to Wii’s lifetime sales, but this is actually a futile race. The industry has been losing money year after year since Wii fell from grace, and PS3 and 360’s gains haven’t been enough to catch up.

    If PS4 and Xbox One don’t pick up, the big mass of games that previously skipped the Wii U would more likely go to PC. Nintendo is half blessed/half cursed by their niche; they have a captive and loyal market, and can even reach out to broader casual pie, but struggle to get the same dudebro games that have come to define their competitors.

    No one should take Pachter’s predictions seriously, given his terrible failrate, but no need to make it personal either. He usually, if not always, makes the most logical and obvious conclusions based on data that’s publicly available. These analyses are a good jumping point for us to think about these further. The important thing is to make a clear distinction when he’s speaking for himself and when he shares the industry’s sentiment.

    To sum, no I don’t agree with Pachter’s prices here, and if Sony and Microsoft tried this, they would be digging themselves into a hole. I’m actually scared of Pachter’s line of thought here. Price wars are historically dangerous to instigate in markets. It’s the sort of thing that kills industries.

    • greengecko007

      “(seriously they still haven’t made their money back off the PS3)”

      Let me leave these here for you.

      http://www.ign.com/articles/2010/06/28/ps3-profitable-price-cut-unlikely

      http://www.pcworld.com/article/196214/article.html

      http://www.edge-online.com/news/sony-ps3-now-profitable/

      You have to spend money to make money sometimes. Nintendo is for the first time selling it’s console at a loss, and I fully expect Microsoft and Sony to continue to do that too.

      “Price wars are historically dangerous to instigate in markets. It’s the sort of thing that kills industries.”

      The theory of Social Darwinism disagrees with you.

      • plsburydoughboy

        I don’t have the time to debate PS3, but this is what you need to know about price wars http://www.spruancegroup.com/spruancequarterly/price-wars-are-an-unwinnable-gamble/

        I swear, nobody who brings up social darwinism understands what they’re talking about

        EDIT: Sorry about the broken link. Which was really just a word stuck to the url. Fixed.

        Here’s another one:

        http://www.investopedia.com/terms/p/price-war.asp

        You’re asking me for proof Playstation has never really made Sony money. Obviously, it’ll be easy to dismiss any link or source I come up with. There’s disagreement on this point, but among analysts and Playstation staff you have to be wary of whether they’re saying things for their benefit and if they have numbers to back that up.

        Here’s a presentation from Ben Cousins last year called ‘When Consoles Die, What Comes Next?’ It’s on slideshare but there is audio. You will have to click the play button at the middle button for that to work. Without playing it, though, the slides tell much of the story.

        Ben is a veteran in the industry, and much of his career has been precisely with the PS3. He bailed to work on smartphone games late in the console’s lifetime.

        http://www.slideshare.net/bcousins/when-the-consoles-die-what-comes-next

        If you want to skip straight to it, go to slide 27, at 4:54 minutes in.

        Lastly, in a word: Social Darwinism has nothing to do with price wars. Price wars is about deliberately giving up profitability, planned for an extended period of time, to get at market share. It’s not so much about winning as it is about making sure you’re not the biggest loser, and hoping you can somehow survive after it’s all said and done.

        Coke and Pepsi can engage in price wars. They’re big enough to swallow years of losses, and even then they wised up about doing it for too long. Playstation and Xbox can’t afford that kind of war, not when margins are wafer thin as it is. Especially not when the whole industry is shrinking year after year.

        • greengecko007

          At least the links I provided you actually worked.

          The point is, PS3 has been profitable for Sony for years. So I was correcting you on that. Your opinion may be unbaised, but you are also uninformed.

          I have no idea what I’m talking about? Care to back that claim up with some evidence? Preferably with some links that work this time?

          edit:

          The first link you provided simply defines what a price war is. What is your point? That doesn’t prove any of your points, so why bother sharing it?

          Social Darwinism has everything to do with business. It is the theory (theory because it’s not always the case, and you don’t have to agree with it) of survival of the fittest. In business scenarios this means that companies compete with each other to produce the best product. Price wars are a part of that competition. In the very hypothetical situation that the PS4 and XboxOne do launch at $400, the Wii U would be forced to make a price cut in order to compete.

          “Playstation and Xbox can’t afford that kind of war”

          Playstation and Xbox are made by Sony and Microsoft respectively, which I’m sure you know. I’m also sure you know that unlike Nintendo (who has plenty of money too) Sony and Microsoft are not purely video game retail companies. They have other products making money for them, not that it matters because like I said, after a couple years of selling their consoles at a loss, both Sony and Microsoft made money in the long run. They aren’t in this financial hole you think they are in.

          Lastly, you think the whole video game industry is shrinking every year? Please tell me more about how the expansion of video game audiences to tablets, phones, TVs, diverse new control schemes and more retail options like physical and digital copies show a shrinking industry. Oh that’s right, because it’s not…

  • audi lover

    That cant be right 400 dol is peanuts thats like 300 english pound I can earn that in a day

  • ancientgamer

    ya right under 400 my ass im guessing 499$ at its lowest for launch

  • $25692128

    Whoa, whoa, whoa. As a religious follower of Michael Pachter, I didn’t even know an XBOX one, PS4, or Wii U existed. Didn’t he previously say that the Wii/PS3/360 generation of consoles would be the last? I never bothered to look into these new systems.

  • Potemkin

    I never buy consoles on day one due to the problems they carry along, but I think this time I will buy the PS4 as soon as it comes out :D

  • http://www.facebook.com/people/Chris-Bingham/100000260255063 Chris Bingham

    Wii U will still be cheaper Patcher regardless.

  • Mr. Hobo

    I find it interesting that at first, he said that the wii U would only sell as well as the GameCube(22 million). Now he’s saying it will sell 50 million units. Quite the increase.

  • Cameron

    Hey, remember when Pachter predicted the Kinect would launch at $50, but it ended up launching at $150?

    Also he seems to forget that more processing power = higher manufacturing cost, higher manufacturing cost = higher price. I’d say a more realistic price tag would be PS4 at $400 and Xbone at $450.

    Also, this article is worth a read: http://nintendo.about.com/od/wiiliving/a/Does-Michael-Pachter-Know-What-Hes-Talking-About.htm

  • Guest

    I can’t really believe, that I say this, but: He’s right! Nintendo has to advertise the Wii U better. whether with an official price cut or better bundles.
    Also I believe, that PS4/Xbone will launch somewhere between $349 and $449 – everything else would cause bad sales.

  • http://www.facebook.com/profile.php?id=8803617 Daniel Schwarz

    I think the XB1 and PS4 will be closer to $500.

    • Parish Gilliam

      Sadly. .but true : (

  • http://people.ign.com/returnofthetruth2 ReturnoftheTruth2

    Anything under $400 will sell them.

    • Petri

      Of course, if PS4 was 350 on launch, I would buy it for Sony exclusives and as blu-ray player.

      But they wont be under 400.

  • TaintedXGamer

    I loled at the X1 reveal though i will say this….. perhaps they saved the gaming part of x1 as last for E3, though judging from the various reactions on youtube, that reveal may have left such a sour taste in those xbox fans, that they might not forgive microsoft for such a f*** up of a reveal, in the meantime, WII U FTWIN!

  • Sami Rautio

    Thats better than over 500€ / $ console But here is a question for you about MarioParty series :D http://www.youtube.com/watch?v=qCKA_GYfsq0

    • ezquimacore

      You need to practice if you want to be a youtuber, for real.

  • http://www.facebook.com/Rarevolutionary Marcus Garrett

    Why the heck do people still listen to Pachter? We’ve seen him eat his words so many times. How can anyone still think of him as a credible analyst?

  • HypocritesRROD

    Wow! The pach-attack is back, telling lies again. Making nintendo seem irrelivant and giving false hope to all xbots. He just loves to be proven wrong. He is one of those guys. I think there’s a word for it. Troll.

  • Rafael Saldana

    BS, they’re going to be $499 for base and $599 for deluxe, why? Because I Fu@!&# said so, plus by the end of a subscription you’ll end up paying that or even more if you cancel it, everyone that owns a cell phone knows this so you know Pachter is still rocking a Pager

  • Noah Umana

    I think PS4 will cost 450 and XB1 will cost 550

  • The True Gamer

    I think is proves the Wii U was overpriced.

  • Nintengoth

    I highly doubt the PS4 will go for $349 in pounds that would be just under £230 that’s bollocks, I see Wii U Deluxe still for £300, that either makes the Wii U extremely expensive or the PS4 aint as powerful as we all think. i reckon the PS4 will sell for around £500 or $750, the tech in it is that of high end PCs and they cost loads with the parts the PS4 has. the Xbone will be round the same price I would of thought.

    it just sounds stupid to me when the PS3 came out its RRP was £599 or like $900! that’s stupid! so the PS4 has way more powerful tech in it and itll be cheaper? nah nah nah lol I know the prices don’t transfer like that but still…

  • Elem187

    Pachter is in his wishful thinking mode again..
    Sony learned from their Five Ninety Nine United States Dollars mistake. So the PS4 willl launch for Five Forty Nine United States Dollars.

  • Kris

    This will mean some serious losses for both Microsoft and Sony.

    • NkoSekirei

      i hardly doubt ps4 and xbox one would be below $400 and i think their price will be above $500

  • LopsidedPasta

    This guy is the biggest fucking retard I’ve ever seen.

  • jlahoud

    I do not agree whit this conspiracy the media is doing right now to kill Nintendo and it’s Wii U. Some
    people are trying to scare people so
    they don’t buy such as Mr. Patched, Electronic Arts (EA) …who must paid by Sony and/or Microsoft to kill Nintendo.

    As a Nintendo fan (and former Sega one too) I am fed up with
    media always repeating the same song over and over….is it the last console for
    Nintendo? ..it’s I like Dreamcast? It has not selling enough ..it’s lacking
    this ..it’s this and that…

    just to scare people so they don’t buy the Wii U console

    I got two word …Shut up!

    There is plenty of people who enjoy the Wii U and third party as Ubisoft, Sega and others
    believe in it and constantly repeating that they fully support the Wii U but
    the media attention goes to Electronic Arts (EA).

    As Roosevelt once said ..the only ting we must fear it’s
    feat itself . ..So the same goes for a console; If you keep on brainwashing
    people about the fact that the system is not selling enough they will get
    scared and don’t invest into it….consumers
    are like investors.

    The Wii U is a great console and offer a lot of potential
    that Xbox On and PS4 will never do…

    1)
    It has the best controller
    ever in history which is the Gamepad
    equipped with a tablet like touch screen, analog sticks, arrow pad and buttons which interact with a console that
    offer a lot of potential for gaming and multimedia. To be used with and/or a TV
    set, equipped with NFC technology (similar to SKYLANDERS technology), camera,
    motion, etc….lots of potentials . PS4
    will have a boring pad with a small touch screen that is more like a
    calculator screen and the XBONE Kinect is more like a Big Brother watching
    you! Also. Both of PS and Xbox one will
    have boring déjà vu controllers while Wii U has a nice classic controller and
    can use Wiimote and Nunchuks as well.

    2)
    It’s 110 retro compatible
    with its predecessor the Wii for all games, accessories, controllers,
    balance board, etc… Witch was the most innovative and selling home console of
    all times (excluding the Nintendo DS that is handheld).

    3)
    Even if they say PS4 and X
    box one will have better technical specs I say one thing …it’s all about the
    gaming experience stupid! The first Wii proved the same it outsold both PS3 and
    XBOX 360 even do it did not offer the high end HD graphics and internal
    memory.. Why? because of the gaming experience it offer to people and hat
    ‘’democratic’’ user friendliness
    approach it had to reach everybody.

    4)
    Who need a PS4 or Xbox one
    (XBONE) when you can have a well equiped PC ? most of the popular games are
    available on PC and they lack of good first party games…the advantage of
    Nintendo it that there is a lot of good first party game (and to come) which
    will NEVER come to PC or other system that is not Made by Nintendo.

    5)
    Wii U It will allow you to
    sell/buy second hand games PS4 and Xbox one will not.

    6)
    Xbox One and PS4 requires a
    constant internet connection Wii will not require that…

    7)
    Miiverse and more are
    unique to Wii U

    8)
    Sega will lunch 7 games for
    Wii U and 3 exclusive to Wii U…Ubisoft and other third parties believes in the Wii U potential.. EA
    backtracked that statements because they saw what disappointment with people
    with the Xbox one which lead to many retailers to promote Wii U instead of XBONE (Amazon Germany) in the UK
    and GameStop.

    9)
    EA has a problem with
    Nintendo for a political/commercial reason and note for the technical spec of
    the Wii U. Nintendo refused to use the Origin platform to sell games !

    10)
    The cost to by PS4 or X Box
    On will definitely be more expensive
    that Wii U which will even got down by the holiday

    11)
    PS4 might use the PS
    Vita for a ‘’gamepad like’’ second
    screen but can you imagine having to pay
    a Vita and a PS4 ? and what about the functionality ? the Wii U Gamepad is fully
    functional with the console and it does not require Wi-Fi or network….

    12)
    If I was EA games, I would be ashamed to talked against
    Nintendo; as a great SimCity fans we were highly
    disappointed with the quality and playability of the latest SimCity .. Believe
    it or not a am still playing SimCity 4 (rush hour) more that the latest one
    that was lunched 10 years after ? because I wanted a SimCity gam not a Sims
    villages game! The building are nice but the landscapes are too small and the
    problem it had at its launch were too serous that EA had to offer us a free
    game. Plus EA is no longer what it was in the Past. I believe Ubisoft will
    become better in the next years. If EA want to make it even to Nintendo they
    should consider their frostbite and launch a nice well done SimCity game on Wii
    U that will enjoy the Gamepad functionality.

    13)
    PS4 or XBOX One what is the
    difference ? at least the Wii U is unique with its gaming.

    14)
    Only time will tell us what
    will happen with the gaming industry so stop speculating on this and that….

    • LopsidedPasta

      The spa

      …cing in y

      our comment is
      weird.

      Maybe you should check

      your comment before

      posting it

      And who the HELL is Mr. Patched? You are so sad

    • ezquimacore

      Let’s call Alex Jones!!!!!

    • RockGod

      You gotta admit…. this guy is really passionate about his opinion.
      I gave him a thumbs up just for his dedication.

  • Josiah Parsons

    no way.

  • Rey Hardy

    Xbox One and PS4 WONT be $400 or less. Xbox One wont be less then $500. Cheapest it will be is $499.99. PS4 at cheapest will be $599.99.

  • Dez

    Who honestly listens to Pachter? He can’t even pick a side and roll with it, he’d be the first person to stab you in the back if your trusted him. What’s worse he is not even a neutral figure, he switches sides, denies past comments, etc. Anyway, Pachter is out of his mind if he thinks the PS4 is going to be on sell for a mere $350 like the Wii U. Does he even realize how much of a loss per console that would be for Sony?

    Sony always makes the most powerful consoles that is why they are always more expensive. If Nintendo’s base console is priced at $300 and isn’t profitable, there is no way in hell Sony can drop the price as low as $350. $600 is obviously not something they are going to do again, but I’d expect $400 at the absolute cheapest and I’m betting it’ll be $450 or $500. Moreover, people keep proclaiming the death of Nintendo and the Wii U, yet Nintendo won last gen. On top of that, Nintendo really benefits from its console being released when the others launch, since the Wii U will have its kinks worked out, its features are available, it has a strong line-up of titles and it’ll be cheaper.

    Tell me how Nintendo isn’t going to reap the rewards come the holiday season? Almost all the desired Wii U games this year are coming out in the fall or just in time for the holiday season. Then there is the whole deal with Microsoft/Sony opposed to used game sells and the console(s) checking for internet access. I believe I read that Gamestop would only advertise consoles that support used game sells and only the Wii U is confirmed to do that, plus it is the only one of the three that is backwards compatible. Nintendo isn’t the 2nd largest game company in the world for no reason (only surpassed by the conglomerate Activision Blizzard) nor have they lasted the longest in the console business because they don’t do well.

  • http://twitch.tv/dve2k DVE

    Nappa: Hey Vegeta what does the scouter say about the PS4 with the same dam controller and XboxTV1 prices? Vegeta: It’s over 400 o. 0

  • Ricky__Spanish

    Hes nuts. A current 360 with kinect and a 250 GB hard drive is 400

  • Quicksilver88

    Wow….how is this guy always so wrong and still granted a voice in the industry? I do believe WiiU will get a modest xmas price cut and a new bundle or bundles. I also think Vita will get a cut and needs one. $250 is just too high for the wifi. I really want Vita to do better because I have one and it really is a nice kit. If they could get it to $200 that would force Nintendo to consider a price drop on 3DS XL or face going head to head at same price. I think Microsoft will do a subscription based XBone. It will allow them to push it at a lower price and most xbots need xbl gold for their shooters and will take the offer. I mean both these consoles are using the newest 8 core processor technologies, new GPUs, 8gig ram, considerable size hard drives, and being bundled with things like kinnect or ps3 eye. No way they can sell these units at $400 or lower. Plus the guy fails to realize that the launch consumer is usually not price conscious. Units will be limited and why take a loss. If they launch so far below cost how can the manufactures drop the price the following year to motivate sales?

  • ACE

    patcher shut up!

  • Mark P

    Naw, they will launch AT LEAST for $500. And that will be just the basic set.

  • Michael Jurado

    so if a 360 with 250GB + kniect cost 400$ that would mean a brand new xbox with 500GB + a brand new Kniect … would amount too a 650$ price tag?

  • RockGod

    Sh*t….. sorry, that was my best guess at what he’ll pull out of his *ss next…

  • Frik

    ah ah…supid dumb asshole

  • bugart19

    I can not believe that either the Xbox 1 and PS4 will sell below $400, all that hardware power is costly.