Microsoft is waiting for Sony to reveal the price of the next-gen PS5 before undercutting it with the price of the Xbox Series X, analyst Michael Pachter believes.
Pachter joined journalist Geoff Keighley, former EA and Xbox executive Peter Moore and Xbox’s Aaron Greenberg on a mini edition of Bonus Round to make the statement.
“From what I’ve seen, Sony’s gonna have to charge $500 for the PS5 and Microsoft has a big balance sheet,” Pachter said, citing a report that suggested Sony would manufacture less PS5s than PS4s at their respective launches, in part because of higher production costs.
“If [Microsoft] wanna cut the price by $100 – just price below [PS5] and subsidise the first 10 million [units] – they will,” he continued. “So, I think that they’re waiting to have Sony blink first and then they’ll reveal the price. Very likely $400 [USD].”
Moore, who helped to launch the Xbox 360, agreed with Pachter.
“Michael’s right; what both companies are going through right now is [asking] ‘how much can we afford to lose in the first 12 to 18 months?’ ‘what is our attach rate of software to hardware?’ ‘What are we willing to do in year one, two and three to hit 10 million [units]?’
“Microsoft right now – the stock price, the market cap – everything’s flying for them,” Moore continued. “Does Satya [Nadella, Microsoft CEO] say, you know, ‘this is our opportunity right now, as we did with Xbox 360, let’s get in, let’s price it right’?”
While neither company has said much about price, Xbox head Phil Spencer said the company will be “agile” about it, while Sony CFO Hiroki Totoki has said that multiple factors will play a role in the PS5’s initial recommended retail price (RRP).
This article may contain affiliate links, meaning we could earn a small commission if you click-through and make a purchase. Stevivor is an independent outlet and our journalism is in no way influenced by any advertiser or commercial initiative.
