Another E3 is around the corner, which means rumors and speculation are running rampant. Among them are the usual questions about possible price cuts. With the Xbox One now firmly tied with or below the PS4 at $399 without the Kinect ($349 when “on sale”), will Sony respond? Will Microsoft go even lower, possibly jumping into the monthly lead in sales? Video Game industry analyst Michael Pachter, with Wedbush, has come forward and given a firm “no” to all of that.
In an investor’s note released today, via Gameindustry.biz, Pachter states “We do not expect price cuts for the Xbox One or PS4. We do not expect Microsoft to permanently cut the price of the Xbox One without Kinect from $399, instead focusing on compelling bundles with first- and third-party content, with some of the applicable games included as free pack-ins… Although the price of the Xbox One has been discounted by $50 for much of 2015, we believe that the price will revert back to $399 by the time that the holidays arrive, particularly if sales pick up.”
Pachter went on to explain that the PS4 continues to sell better than the Xbox One, and thus they have no incentive to lower their price. Instead he feels that Sony will adopt the Microsoft strategy and begin packing free games in with the system.
This doesn’t mean there won’t be any lowered prices for consoles at E3 2015. Pachter explained that his firm felt the last-gen systems would receive a price drop of at least $50, which he feels is “long overdue”. And, of course, Nintendo could surprise everyone by lowering the price of their Wii U console, which has lagged behind in sales since the PS4 and Xbox One launched.
Published: Jun 8, 2015 03:16 pm