Sony will launch the PlayStation 4 with a price tag below $400, predicts an industry analyst.

Sterne Agee analyst Arvind Bhatia contests that Sony will have learned from its mistakes when it launched PS3 at $600, which hindered the console uptake in its early life.
"Given that experience, we believe Sony will aim to keep the price point for PlayStation 4 below $400," said Bhatia, via Gamespot.

This supports predictions by Wedbush Morgan analyst Michael Pachter, who estimated a PS4 launch price of around $349, alongside an approximately $399 Xbox One.

Even at that price, Pachter thinks Sony could still make a profit on each console, estimating that it will cost Sony around $275 to manufacture each PS4.

But Bhatia predicts that Sony will target a sub-$400 launch price even if it means taking a loss on each console sold.

Like Pachter, Bhatia also appears to expect the Xbox One to be more expensive than PS4, later adding that a launch price below $400 for the Microsoft console would be a "pleasant surprise".

It has been previously rumoured that Microsoft will launch with a two-tier pricing system; a one-off payment of $500 or, taking cues from the mobile phone business, an initial charge of $300 subsidised by a 24-month commitment of $15 per month - which includes Xbox Live.

Platform holders aren't expected to reveal pricing details at E3 next week, but Microsoft has already pledged to focus its E3 presence on games as oppose to the multimedia it spotlighted at its Xbox One reveal event. While Sony is expected to offer the first glimpse of the actual PS4 hardware.

Posted: Jun 07, 2013 5:47 pm
Related Forum: PlayStation Forum

Source: http://www.computerandvideogames.com/411764/ps4-to-launch-at-under-400-analyst/