The idea of the Xbox Series X and PlayStation 5 expected having an entry-level price tag of between $500 and $600 isn’t surprising. However, industry analyst Michael Pachter says Microsoft might be willing to take a hit to win the next-gen console war, suggesting that the company could sell the Series X for $400 at launch.
Pachter, who is a veteran industry analyst, I might add, during his appearance on Periscope with Geoff Keighley. During his appearance, he explained exactly why and how Microsoft would low-ball the Series X price.
“From what I’ve seen, Sony’s going to have to charge $500 for their PS5, and Microsoft has a big balance sheet. if they want to cut the price by $100, just price below and subsidize the first ten million, they will.”
The general idea is that, since Microsoft generates so much revenue from other sources, the Xbox division can take a hit without even stumbling. With the exception of the lackluster May Inside Xbox (you know, the one that had over-set expectations,) Microsoft has been one step ahead of Sony and the PS5 for all of 2020. We’ve seen the Series X console, we’ve seen the controller, we know all about specs (it is more powerful on paper), and we’ve seen a tiny little bit of gameplay. Sony, on the other hand has done little more than rebut with a specs sheet, explanation of backward compatibility, and showcase the new DualSense controller.
With Microsoft being outrageously open about what its doing, what it can share about the console, and – basically – the inner workings of the Xbox Team, it actually has a fighting chance of raking in much higher launch sales from the Series X compared to what it saw with the Xbox One. With that in mind, Pachter has also said that he believes Microsoft won’t announce pricing for the Series X until after Sony spills the beans for the PS5.
If Microsoft can willingly sell the Series X for $400, and announces its lower price after Sony makes its announcement, then Sony better have something up its sleeve. Such a thing would allow Microsoft to dominate the media cycle, draw more attention to itself, and – quite possibly – draw in some significant sales as well. This would hold true, even if Sony decides to price the PS5 cheaper than the expected $500-$600 window at launch.
Considering I plan to buy both consoles, I personally hope both companies start a pricing war. I would be more than happy to pay $600 for both next-gen consoles.