PS4 Pachter: PlayStation 4 to sell for $349, Xbox One $399

Martok

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Bill of materials for new hardware $275 - $325; subsidised Xbox One likely
Investment firm Wedbush Morgan has suggested the PlayStation 4 will retail in the US for $349, significantly lower than the PS3's starting price of $599.
In an E3 preview note to investors Michael Pachter, analyst at the company, estimates that the PlayStation 4 has a bill of materials at around $275, while Microsoft's Xbox One costs around $325. As such, Wedbush is expecting the new Microsoft console to cost $399.
But while Microsoft's new hardware may be priced higher initially, it's also more likely to be available at a subsidised price to the consumer through a subscription contract from a broadcast, cable or ISP provider.
"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. 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.
"In addition, Microsoft could conceivably subsidise the Xbox One through prepaid Xbox Live Gold subscriptions (as it has done on a limited basis in the past) or premium Skype functionality as well. Similarly, Sony could subsidise the PS4 through prepaid PlayStation Network subscriptions, but unlike Microsoft, it does not have a history of doing so," he added.
Looking at Nintendo, Pachter suggested the company needs to prove to consumers at E3 that it has an enviable line-up of titles for the rest of the year.
"Nintendo risks losing additional share to its console competitors if the quality and volume of content available for Wii U does not pick up markedly in the near-term.
"In addition, 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."
While all eyes will be on the new console generation, Wedbush Morgan is also expecting a round of price cuts on the current generation technology. The PlayStation 3 and Xbox 360 are likely to have another $50 shaved off their prices, with the Wii dropping to $99. As well as a Vita price cut from Sony, there's also the possibility that Nintendo will try and boost Wii U sales with a $50 price cut or new software bundle.
Source: gamesindustry
So, more speculation on pricing. Take this with a large dose of salt at this stage, I'd say.
It'll be interesting to see when pricing is announced how close the real pricing is to these suggestions and what the translation to sterling would be. If these figures are near the mark then we could be looking at pricing of £299 for the PS4 and £349 for the XBox. However I suspect we'll be looking more at £399 for each of these.
 

farfromsane

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In all honestly i'd be shocked if the UK price wasn't one of these £349 or £399. Would love it to be £299 like the original Playstation.
 

TalllPaul

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I really hope it is a decent price, there is some decent tech getting shoved into it though. I think they need to make it cheaper than the xbox one for sure, more brownie points gained.
 

Slaine

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I cant see us getting much change out of £300, which is just too much for me. No backwards capability and the inevitable price-increased games for the next gen means I'll be waiting indefinitely.

Dont see the point rushing out buying at launch this time round. Ive been burnt before, and I'm get tired of watching the console/games prices tumble so shortly afterwards. Plus I'm going to let others be the reliability testers too. Besides, without exception, all console launches have had a decent size list of games available, but only about 20% have ever been worth your money. Why rush out to buy at launch, waste a fistfull of cash on games you'd normally pass by, to essentially play by yourself as not everyone has upgraded to the next gen?

Now if the price was £150-£200 I'd probably be tempted. As it is, I'll wait for the inevitable price drop/slimline models. And trust me @Martok, I will be waiting!!!;):lol: (anyone keeping up with my posts may have noticed Im not too enamored by the next gen at all).
 
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ColSonders

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I don't understand how the XBOX ONE can possibly cost more to produce than the PS4?

Seriously how does that work, the biggest differences between them are the fact that the PS4 uses more expensive memory so how come the XBOXONE is the more expensive to produce?

I am assuming they both come with one controller...the PS4's seems to have more tech in so is presumably the more expensive to produce...they both come with webcams, i'm not sure on the spec of the PS4 webcam but i'm sure it can't be that much cheaper to produce that it compensates the more expensive memory and the potentially more expensive controller.

I'd also bet that the PS4 casing isn't just a plain box and is likely more expensive to produce, although that's complete speculation, but I just don't understand how the XBOXONE can possibly cost more. And if it's the more expensive console it's basically gonna flop outside of America.

So i'd say that Pachter is basically pulling figures out of the air and he's full of shit going from available info.
 

Slaine

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Thats the thing with Pachter; theyre educated guesses, but guesses all the same. Dont know why this bloke gets so much airtime. Yes the gaming industry is fundamentally a business so you could argue the usual rules apply, but have you ever seen such a bunch of passionate consumers as gamers??!?!? I really cant name any other business where you are dealing with such an unknown quantity like gamers. Its the reason why theyre arent more Companies trying their hand at console manufacturing, and why so many have tried and failed. Its not just simple manufacturing, supply & demand etc.
 

yinkin

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That Kinect 2.0 must be costing a bomb
 

Slaine

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That Kinect 2.0 must be costing a bomb
Well its more than just a camera. M$ get a bit tetchy if you call it a camera, as its correct label is a sensor. Its an RGB camera, multi-array microphone & a depth sensor (comprised of an infrared laser projector combined with a monochrome CMOS sensor), with facial, voice & gesture recognition software. Capable of tracking up to 6 people with 20 joints per player. And this is just the first Kinect, as Kinect 2.0 is supposed to be all new and swanky with vastly enhanced features and software.

They did take a gamble with it, which paid off for them as they sold quite a few of these (24 million at last count apparently). Fastest selling consumer electronics device ever, according to the Guiness Book Of World Records.

But like what can be said of any games console, its only as good as its games. And Kinect had a hell of a lot of shit released for it. Some good (like Fable The Journey and Star Wars Kinect), and some truly awful (like Kinect Joyride and Rise Of Nightmares). Some of the optional feature add-ons were pretty good (like Mass Effect 3, Ghost Recon & Skyrim).

But it cost £150 when it first came out. With that in mind, I dread to think how much Kinect 2.0 cost to manufacture. I know theyve dropped the motorised pivot in a bid to keep down costs, but I suppose with the new tech and software it would be optimistic to assume a standalone cost (not that there is one) would be any less than £150. Factor in the cost of the new console, and £350 for the new Xbox is looking very very cheap.

This is whats upset my son so. Hes not a Kinect fan, but of course its not even optional to not buy an Xbox One without one.:wtf: And he knows as well as I do this is going to drive the cost up of the Xbox One exponentially.
 

yinkin

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Trouble with Kinect is, it doesn`t make me want to buy the console its attached to, I am not into this motion control gubbins, it all works sort of, great for a play about with , but not really sensitive enough for fully fledged gaming. I know they have worked on kinect to make it more sensitive, but they have also done the same with the control pad, so kinect will still feel less responsive than the pad, even without taking into account the differences in how quickly you can press a button, compared to how long it takes to do a gesture.
 

ColSonders

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It's not the cost that they are selling it for that matters though is it? That £150 webcam 1.0 will of cost a tiny fraction of that to produce, much the same as the USB wifi dongle that was a rebranded £4 dongle cost significantly more than £4 and the cost of the 360 hard drives were something daft like £120 when they first launched with a HDD inside that you could buy for about £35 at the time.

I understand that the cost of developing the software for the webcam 2.0 must have been high, but the actual hardware, the cost to produce it as opposed to what obscene price they pick out of the air to sell them for is probably more in the region of £25. There's precisely no way on earth the difference in production cost between the webcams for either console compensates for the difference in RAM costs plus the extra $50 that this moron is quoting.


And outside of those components the systems are essentially identical, both have custom built AMD APU's, which I imagine will be costing roughly the same, though again the PS4's hardware here is going to be the more expensive of the two. Going back to the controllers, the xboxone is going to be cheaper to produce as it's a 360 controller with two added rumble features added and I think motion controls? Where as the PS4 controller doesn't have those two added rumble motors, but it does have a built in lithium polymer battery built in and a touch pad, and a speaker I think too.
 

Martok

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The Kinect 2.0 will have a factor in production costs, plus there's the integration with TV services (you'll be plugging in a cable/satellite service so there'll need to be some gubbins in there to deal with that). Then there's voice control (not sure if that's built into Kinect or the box itself?) but to get that to work to any decent standard is going to require some hardware and software that's not going to be a 50p add-on.

Going back to the controllers, the xboxone is going to be cheaper to produce as it's a 360 controller with two added rumble features added and I think motion controls? Where as the PS4 controller doesn't have those two added rumble motors, but it does have a built in lithium polymer battery built in and a touch pad, and a speaker I think too.
The PS4 will have 2 rumble motors (unless they've come up with some other design for rumble). It is a rumble controller, hence the name DualShock 4. This was also confirmed at Sony's press conference:



During its press conference, Sony promised that the new design improves the built-in rumble technology, as well as latency to cut down on lag between button presses and what's happening on screen.
http://reviews.cnet.com/8301-9020_7-57570413-222/sony-gets-touchy-feely-with-new-dualshock-4-controller-for-ps4/
 

ColSonders

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The Kinect 2.0 will have a factor in production costs, plus there's the integration with TV services (you'll be plugging in a cable/satellite service so there'll need to be some gubbins in there to deal with that). Then there's voice control (not sure if that's built into Kinect or the box itself?) but to get that to work to any decent standard is going to require some hardware and software that's not going to be a 50p add-on.
I forgot about the added hardware to allow HDMI input actually, but surely given the other offsets it should still be about on par between the two consoles.


The PS4 will have 2 rumble motors (unless they've come up with some other design for rumble). It is a rumble controller, hence the name DualShock 4. This was also confirmed at Sony's press conference:
Unless i'm mistaken the 360 controller also sports two rumble motors...the xbox1 controller sports an extra 2 in the triggers for trigger rumble, so that's two more than the PS4 controller has that we know of.
 

Martok

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Unless i'm mistaken the 360 controller also sports two rumble motors...the xbox1 controller sports an extra 2 in the triggers for trigger rumble, so that's two more than the PS4 controller has that we know of.
I misinterpreted your post, I thought you were suggesting that the DualShock 4 didn't have rumble. You are correct, the new XBox controller will have 2 small rumble motors in the "impulse triggers" as well as the main rumble motors. There's a demo of this here:

 

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I'm a project manager, and his figures are flawed, its a trap many, many people fall into. He estimated the parts for the costings, but its not just the parts. It the development time and cost of all the resources (i.e. manpower, equipment, rentals, amenities etc). They all have to be factored in to provide the ACTUAL cost, if not you loose money. I'm aware all gaming consoles are generally sold at a loss initially, but then hopefully recooperated via pheripherals etc. The sale price he's saying may be true, but for an apparent professional he talks a lot of shit.
 

Slaine

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Well I dont work for Nutbush or wherever he works. I went to the school of hard knocks, where the only place to put bleach is in your hair. Anyway, I comfortably predict £400 for Xbox One and £480 for the PS4, for no other reason than Im bored.
 

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Besides, even if PS4 is cheaper than xbox one, can you see Microsoft pricing themselves higher? I can't as they learnt that lesson with the original xbox. Also we know which company has the financial muscle!
 

ColSonders

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I'm gonna go with the PS4 coming out at £350 in the UK with the XBOXONE coming out at £199 in a desperate attempt to actually sell one outside of the US.
 

Slaine

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XBOXONE coming out at £199 in a desperate attempt to actually sell one outside of the US.
The XboxBone will be lucky to sell one outside of the factory, let alone the US.

New rumour currently going around is that Murdoch has cut a deal with M$ to sell the XboxBone with a Sky subscription at a heavily reduced price. Noone has yet speculated how heavily reduced, and of course theres been no confirmation whatsoever. A Sky Exec claimed not so long ago that they were working very closely with their friends at Microsoft with regards to the XboxBone. It couldve just been reference to a new and improved app on the next gen console, given how successful and popular the Sky app on the 360 is.:think:
 
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