With the impending announcement of next generation systems from Microsoft and Sony, this being the Xbox 720 and PS4, many gamers have been wondering what price point these consoles will be initially released at. When the PS3 launched back in 2006, the system was priced at $500 and $600. Through the release of the Xbox 720 and PS4, many have been contemplating if the system will cost less or more than this range of prices.
Through an article that was delivered by Games Industry yesterday, it appears that a video game analyst believes that the Xbox 720 and PS4 will actually cost around $350-$400 in the United States. From the information that was given, Baird Equity Research makes the following points:
Given the fragile state of the console game market, we expect the E3 trade show in June will take on added significance, most likely providing the industry with the first public opportunity to examine next-generation hardware.
Our checks suggest that next-generation console hardware will be largely built from 'off the shelf' high-end PC components, along with hybrid physical/digital distribution models, enhanced voice controls and motion sensing (Kinect integration with every Xbox), and broad multi-media capabilities.
Moreover, a PC-based architecture (Intel chips in the case of Xbox) should have a number of advantages over custom-developed silicon: for one, the learning curve for software developers will be shorter than completely new technology. Second, the cost of production and retail price points should be lower than prior console launches.
"Third, it will be easier to build online services around PC chip architecture, including flexible business models (free-to-play, subscriptions) and multi-media (over the top) content offerings. For Microsoft, this design will also allow for more integration with Windows 8 and Windows Mobile devices
Sebastian expects an October launch for the new Sony console and a November launch for the next Xbox, although he warned through his "field checks" there "may be early production issues with Sony's PS4.
For those of you that may be interested, we have listed a few concept photos of the Xbox 720 and PS4 in the slide-show above this article.