Michael Pachter Predicts Next-Gen Console Prices

[Ukomba]

Game console subscriptions?!? No thank you. That kind of thing ballooned cell phone prices beyond all rationality.

 

[ron1n]

Guaranteed to both sell for $700.00 or more in Aus -_-

 

[BrotherRool]

Maybe I'm wrong but would this be the first time in a while the new consoles are not sold at a loss? I wouldn't be surprised if the new consoles didn't end up costing that much given the parts in them. Except for XB1 that this, which comes with a kinect that can see in the dark. I would also assume that Sony has a lot of incentive to make the ps4 a lot cheaper given the $600 price tag of the original nearly put them out of business

Yeah I think it would be (if we're discounting the Wii maybe?) Sony said that they were hoping they'd be able to make a profit on selling the console this time round with much cheaper development which is good considering with the state of the company, they probably can't afford to loss-leader that much.

It also means that if the consoles don't have a quick start, then they can slash prices without too much risk

 

[Jaeger_CDN]

Even if the Xbox does launch at a higher price, however, Pachter said it is more likely to be subsidized through contract subscriptions with ISPs or cable providers. "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 subsidized box in exchange for a multi-year contract," Pachter wrote. "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."

I call Shenanigans

I have enough VCR sized boxes under my TV at the moment plus the fact that I can stream Skype, netflix and any other Xbone 'App' through my smart TV without having to buy an ad laden "Premium" live service over and above my current internet subscription why would I buy something like the Xbone?

Sounds like they also want to use the Xbone as a quasi PVR, well if you put a few games on there plus any HDTV you tape I don't see much space being left on the internal hard drive. Microsoft will also want to you to buy their branded HD's to supplement the Xbone.

I know these quotes aren't coming from Microsoft direct but from an analyst however this isn't far from what was revealed initially since the common theme from it was TV, TV, TV,...

 

[DTWolfwood]

If he is correct, the Xbox is boned! <..>

 

[-Dragmire-]

Eeeeh, I'm betting on $499-$599 each. Cheaper than last gen but not as cheap as this guy says.

 

[Denamic]

Whatever the price, it'll no doubt be twice that in Sweden. Because we apparently have taxes at 100%.

 

[The White Hunter]

So £229 for the PS4 and £261.62 for the Xbox One, both of which were lower than some of the Wii U prices on release?

Of course, I know it doesn't exchange exactly, but something seems off about that for consoles that are supposedly meant to be more powerful than the Wii U

YOu're forgetting that £=$ so far as games go. But still £350 for thew PS4 is fine by me if I can get it at that price with a reasonable HDD (or SSD, preferably replaceable) and Killzone.

 

[Baldr]

Even if the Xbox does launch at a higher price, however, Pachter said it is more likely to be subsidized through contract subscriptions with ISPs or cable providers. "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 subsidized box in exchange for a multi-year contract," Pachter wrote. "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."

I call Shenanigans

I have enough VCR sized boxes under my TV at the moment plus the fact that I can stream Skype, netflix and any other Xbone 'App' through my smart TV without having to buy an ad laden "Premium" live service over and above my current internet subscription why would I buy something like the Xbone?

Sounds like they also want to use the Xbone as a quasi PVR, well if you put a few games on there plus any HDTV you tape I don't see much space being left on the internal hard drive. Microsoft will also want to you to buy their branded HD's to supplement the Xbone.

I know these quotes aren't coming from Microsoft direct but from an analyst however this isn't far from what was revealed initially since the common theme from it was TV, TV, TV,...

They already subsidized the Xbox 360 with XBL, so why not take it one step further.

 

[Covarr]

My prediction: The PS4 and Xbox One launch at $499 and $450, respectively, both sold at a loss (remember, the retailer takes a cut, so even if they're both $500 in materials the companies lose money). This would mean that just about everything he said is wrong, which is why I'm predicting it; Pachter's track record is so awful that it's always a safe bet to count on him being wrong.

P.S. Thanks

 

[BernardoOne]

My prediction: The PS4 and Xbox One launch at $499 and $450, respectively, both sold at a loss (remember, the retailer takes a cut, so even if they're both $500 in materials the companies lose money). This would mean that just about everything he said is wrong, which is why I'm predicting it; Pachter's track record is so awful that it's always a safe bet to count on him being wrong.

P.S. Thanks

Retailers do not get much money for consoles sold, actually. When the PS3 launched they actually got like 5$ for each one sold.

 

[Agente L]

Why is pachter still relevant again?

Cause I can't think of a single reason we still pay attention to whatever he says.

 

[zerragonoss]

Those material costs can't be right. Consoles have always sold at a loss initially. Has technology really fallen in price by that much?

If those are the correct prices for materials, and they use history to try and charge much more... I don't even know. I've never bought before the 1st price drop, I'm in no hurry.

The materials cost is just one part they have manufacture and distribution costs as well. Manufacture costs are the big one at the beginning as you have to build the infrastructure for it.
other wise I would not trust Pacther's opinions on games at all at this point but console price points is something math and business knowledge can get far more actually. also it is people just like him with probably only marginally more information that sets these points.

 

[Johnson McGee]

In my mind the Xbone should be sold for $0 if they insist on continuing to charge for live, like a cell phone comes free with contract. If MS can't even sell it for less than the PS4 though, I don't see them being very successful at all. The 360's edge on PS3 was price and timing and this time they seem to have neither advantage.

 

[Silvianoshei]

"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 subsidized box in exchange for a multi-year contract,"

I have absolutely no clue what that means. What's an MSO?

Every prediction Michael Pachter seems to make turns out to be wrong. How does he still have a job?

What the heck does MSO mean? Is that the stuff you used to find in Chinese food?

MSO stands for Multiple-System Operator. It refers to companies that offer TV + internet + phone services for multiple areas.

EDIT: Wiki page for reference. http://en.wikipedia.org/wiki/Multiple-system_operator

 

[The White Hunter]

Even if the Xbox does launch at a higher price, however, Pachter said it is more likely to be subsidized through contract subscriptions with ISPs or cable providers. "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 subsidized box in exchange for a multi-year contract," Pachter wrote. "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."

I call Shenanigans

I have enough VCR sized boxes under my TV at the moment plus the fact that I can stream Skype, netflix and any other Xbone 'App' through my smart TV without having to buy an ad laden "Premium" live service over and above my current internet subscription why would I buy something like the Xbone?

Sounds like they also want to use the Xbone as a quasi PVR, well if you put a few games on there plus any HDTV you tape I don't see much space being left on the internal hard drive. Microsoft will also want to you to buy their branded HD's to supplement the Xbone.

I know these quotes aren't coming from Microsoft direct but from an analyst however this isn't far from what was revealed initially since the common theme from it was TV, TV, TV,...

Know what else costs $400 and can serve you TV, HD movies and music on demand? An HTPC ¬_¬ As for the contracts he was on about (missed that in my first post); the early adopters dont give a fuck and in the first year thats the market they need, and it's a very important market because that market gives you your word of mouth advertising, arguably the most important form of advertising.

 

[JetFury]

Pachter is irrelevant. Nobody listen to him

 

[The White Hunter]

Michael Pachter also predicted that Fuse would sell over 5 million copies.

Here in the UK, it stormed the UK chart by entering in at position number... thirty-seven.

Another example, if any were needed, of Pachter's searing insight and incredible knowledge of the gaming industry.

Didn't he also rag on the Wii and 3DS? He also said the next xbox wouldn't require an internet connection or have odd used game DRM going on or require kinect all the time.

He's been oddly quiet on the Xbox One front.

I WONDER WHY. HMMMMM.

Oh and hey Jeffers, I got a job so I can buy Wii U games at last Used the down time to 100% Mario Bros U. Felt accomplished, then kind of pathetic xD