Microsoft's Xbox One console is likely to cost around $400 at launch, while the PS4 will have a $350 price tag, according to Wedbush Securities analyst Michael Pachter.
His predictions are based on bill of materials figures, which he reports at $275 for the PS4 and $325 for the Xbox One console. Analysts have expected that the next generation consoles will cost less than previous consoles. When the Xbox 360 launched in 2005, it was available for $300 or $400 depending on the model.
A year later, the PS3 console sold for $500 or $600 based on the model.
While the Xbox One is likely to coat more from the shelf than the PS4, Pachter's note points out the likelihood of a subsidized model too.
"We believe the ability to watch live TV from a cable, telco, or satellite set-top box through Xbox One could entice an MSO to drive subscriptions through a subsidised box in exchange for a multi-year contract," Pachter said.
"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."
A year later, the PS3 console sold for $500 or $600 based on the model.
While the Xbox One is likely to coat more from the shelf than the PS4, Pachter's note points out the likelihood of a subsidized model too.
"We believe the ability to watch live TV from a cable, telco, or satellite set-top box through Xbox One could entice an MSO to drive subscriptions through a subsidised box in exchange for a multi-year contract," Pachter said.
"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."
