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SECTIONS / GAMING

Analysts Tip Microsoft To Slash Price of XBox One Early In 2014

By David Richards & Trusted Reviews | Monday | 24/06/2013

When Microsoft and Sony go head-to-head in the last but crucial quarter of 2013, they and other retailers will be looking to extract the maximum price for the new Sony PS4 and Xbox One gaming consoles. This is despite analysts tipping that one of the manufacturers may start slashing prices early in 2014 to shift stock.

At this stage, the Sony PS4 has a recommended retail price of $549, while the Microsoft Xbox One is priced at $599, $100 more than the USA pricing. However, some analysts are tipping that the price could rise prior to both consoles going on sale, due to the falling Australian dollar.

Wedbush Morgan analyst Michael Pachter has claimed that Microsoft is already preparing for an Xbox One price cut for early 2014. He claims the price cut will come into place if the PS4 takes a dominant footing, with next-gen console purchases.

"We think that Microsoft is prepared to lower price next year," Pachter suggested in a note to investors earlier this week.

Although claiming that an Xbox One price cut could be on the horizon before the console has even launched, Pachter added that despite the higher price point, Microsoft's move to rid the next-gen gamer of its previously stated DRM restrictions and constant internet requirements will see the Xbox 360 replacement match the PS4 on a sales front.

"Microsoft intends to offer a more robust hardware bundle than Sony will offer and Microsoft is convinced that consumers will ultimately appreciate the value proposition presented by Kinect," Pachter said in a research note.

"Microsoft has not done a particularly good job of communicating the value proposition to consumers, but today's announcement will remove an impediment to the company's ability to get its message across. We are confident that with six months of focused messaging, Microsoft can fully level the playing field with Sony, and we expect the Xbox One to sell as many units as the PS4. If we are wrong, we think that Microsoft is prepared to lower the price next year."

With Xbox One pre-orders having regained ground on the PS4 following the DRM repositioning, JB Hi Fi has confirmed that the two consoles are already breaking records for forward orders. 

Last week, the Amazon Video Games store made history, with its biggest pre-order week ever thanks to the launch of the Xbox One and PlayStation 4, an official statement from the company has confirmed. It added: "In fact, at the peak of demand last week, Amazon customers were pre-ordering more than 2,500 Xbox One and PlayStation 4 consoles per minute."

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