This article is over 5 years old and may contain outdated information.
[Updated on July 27, 2024, to ensure the coverage provides accurate information]
Microsoft’s Xbox Series X could cost less than anyone expected. Even a price point of $400 is likely, according to veteran industry analyst Michael Pachter. Unfortunately, this expectation was not met as the console was later sold at $499.99 or its alternate “sale price” of $487.99. However, Pachter did make some solid points in his argument.
Pachter made an appearance on Periscope with Geoff Keighley and it was on this appearance he laid out why he thinks Microsoft makes such a move. The analyst thinks the company wants desperately to beat Sony in the coming generation of consoles. While most people think both the Xbox Series X and PS5 are going to cost anywhere between $500 and $600, Pachter believes Microsoft is willing to take a financial hit.
Pachter claimed the firm is in a position to take a loss because it’s generating so much revenue from other sources. The Xbox Series X is already thought to be more powerful. If it’s cheaper by $100, that would be a killing blow to Sony.
“From what I’ve seen, Sony’s going to have to charge $500 for their PS5, and Microsoft has a big balance sheet,” Pachter said, “if they want to cut the price by $100, just price below and subsidize the first ten million, they will.”
Michael Pachter, Periscope
As another way to drive the knife in, he believes Microsoft won’t announce any price until after Sony reveals theirs. Waiting allows the company to dominate the media cycle, even if the PS5 is cheaper than expected.
Microsoft has spent the last few months being rather savvy in its approach to the Xbox Series X. It was the first company to unveil its console. It’s also the first to show off what it looks like and what games are coming to the Xbox Series X. By contrast, Sony has done a tech demonstration showing off the PS5, but we still don’t even know what it’s going to look like. If Microsoft’s console does debut with a $400 price tag, it’s safe to say the gaming public would be thrilled.
