The current generation Xbox One and PlayStation 4 launched at $499 and $399 respectively.
Both Sony and Microsoft have revealed several details about their next-gen consoles. However, the one aspect that was deliberately left out by both console giants was price. And, while it does seem too early to confirm pricing, a new source may have just let the “cat out of the bag”.
According to industry analyst, Michael Pachter, pricing of the next-gen Xbox and PlayStation will start from $399 (Approx Rs 28,000). The current generation Xbox One and PlayStation 4 launched at $499 and $399 respectively with Sony coming out on top in the battle for market domination.
If Pachter’s analysis is accurate, the next-gen Xbox Scarlett and PlayStation 5 will debut at $399, despite their $500 valuation. But before rubbishing Patcher’s forecast, let’s weigh the arguments:
For
Microsoft launched the Xbox One for $100 more than the PS4, primarily because of the inclusion of the Kinect 2. But Sony’s PS4 did much better in terms of sales numbers. When you consider the next-gen Xbox will likely launch before the PS5, Microsoft could set the price bar low fearing another spell of console domination by Sony.
Then you have to also consider that the Xbox One X and Sony PS4 Pro, the two most powerful gaming consoles on the market, which are currently priced at $399. Making the price of the next-gen consoles go up by too much would be counterproductive for their spread.
Against
The Xbox Scarlett and PlayStation 5 are packing some serious hardware. Both consoles will support 8K graphics on some level, 12o fps gaming, and real-time ray tracing. It'll be a daunting task for Microsoft and Sony to pack hardware capable of supporting these features in a $399 machine.
Lastly, the two top tier consoles, the Xbox One X and PS4 Pro are priced at $399. Considering the next-generation of consoles will easily surpass them in terms of power and capability, it is highly unlikely that they will debut at $399.
It is only logical that today's best won't be priced similar to tomorrow's best, which is why we might see an increase in price, even if it is marginal.
Whether it's $399 or $499, one thing is for sure, India is unlikely to see the same numbers. The PlayStation 4 launched in the country at Rs 39,999. When you factor in GST and import duties, the price could even easily go up to Rs 50,000.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.
