strangel0ve
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Michael Pachter, the Wedbush Securities analyst who just loves making all sorts of predictions about videogames, is making a call about how much the Xbox One and the Playstation 4 are going to retail for. In a recent note to investors, he’s predicting that Microsoft MSFT -0.6%‘s box will start at $399, and Sony ‘s at $349. The material costs he’s estimating at $275 for Sony and $325 for Microsoft.
The Xbox One is projected to cost more than the Playstation 4 in terms of raw materials, and a big part of that seems to be the Kinect adding a solid amount to the deal. Even if Microsoft continues their position as a loss leader to pursue market share and using the gaming console as a platform to launch their software, do you think that the higher (supposed) price for the Xbox will dissuade Xbox fans and cause a shift the the PS3? Or is the price elasticity for the Xbox One going to be lower and allow the Xbox to retain its market share?
forbes.com/sites/davidthier/2013/06/04/analyst-puts-a-price-tag-on-xbox-one-and-ps4/