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Analyst Predicts Trouble For Xbox Scorpio at E3 2017

by Bill Hess

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We’re less than a week away from finally getting all of the details surrounding Microsoft’s Xbox Scorpio.  While many predict that we’ll see games that take full advantage of the 4K gaming machine, we should also get a price and a release date for the console.  Given that the Xbox Press Conference is taking place on Sunday, it will give Sony a chance to do a little rewriting of their E3 script before they take the stage.

Gaming analyst Michael Pachter believes that the trouble for Xbox Scoprio can come in a couple of ways.  The first is if Microsoft prices themselves out of the market with the console.  Pachter believes that the Xbox One Scorpio should be no more than $399.

If they’re above $399 they’re going to have a problem

“That sounds cheap for what you get,” says Pachter.  “I think Microsoft would be making a mistake to price it higher.  If they go at $399 I actually think this will be a better pricing SKU.  I think people that are buying 4K TVs are looking for content.  We’ve finally gotten to that crossover point where 4K Tvs are a way to future proof against television broadcasts turning into 4K.  Right now, unless you purchase a separate Blu-ray player you can’t even watch movie content in 4K.  No cable system broadcasts in 4K.  Netflix has its originals broadcast in 4k… games is a killer app for it.  I think that if Microsoft comes out at a $399 price point it has a chance of remaining quite relevant this cycle. If they’re above $399 I think they’re going to have a problem.”

That doesn’t appear to be the only problem Microsoft could be facing with the Scorpio.  Even if things go the way the analyst believes, he thinks that Sony may do some shuffling in the thirty hours that they have between Microsoft’s announcement and their own stage show.  Pachter thinks that there may be some retalitory pricing if Microsoft announces a $399 price point for the Scorpio.  The analyst guesses that the combination of so many PS4s sold to date and the amount of money Sony is making in subscribtions and software sales could allow them to trim margins and sell the drop the price of the PlayStation 4 Pro.  He believes this price could be as low as $249 for the PlayStation 4 Pro though it could be as high as $299.

If these events did unfold, Microsoft could see themselves back in the same situation this holiday season with consumers looking at two consoles with much different price tags.  The only difference this time around is that Microsoft’s Scorpio would make a more compelling argument for a purchase considering it would be the more powerful device.

We’ll see if these predictions come true in less than a week.  Not sure where to watch E3 unfold?  You can check out all the press conference times and where to watch E3 2017 right here.

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