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AMD Teases PS4 And Xbox One Price Cut In The Near Future

by Damian Seeto

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AMD is teasing that a PS4 and Xbox One price drop might be happening in the near future as production costs drops over time.

AMD’s chip technology powers both the PS4 and Xbox One consoles. The company’s CEO, Lisa Su, held a roundtable at CES and Techradar reported on what she said.

Su said: “The consoles work on a five to seven year strategy, that’s the lifetime for these consoles. Without talking about any particular party’s console – there will be opportunities to cost-reduce.

Consoles tend to be very sensitive to price point, we see that as price comes down console [sales] volume goes up, and that will afford an opportunity to do that in this cycle

Microsoft has already decreased the price of the Xbox One console several times. They could decrease the price even further to increase sales when production costs go down.

As for Sony, a price drop for the PS4 is not really necessary at this point. Close to 6 million units were sold over the Holiday and 35.9 million units have been sold overall. Sony is doing fine at its current price.

However, price drops can attract latecomers and casual gamers. Massive price cuts were made to the PS2 and PSOne consoles and they sold over 155 and 100 million units respectively.

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