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Despite of rumours regarding hefty price tags that will be carried by next-generation video game consoles from Microsoft Corp. and Sony Corp., market analysts believe that the two systems will end up in $349 - $399 price-range. Although Sony’s PlayStation 4 is more powerful from many points of view, it will be more affordable than the Xbox One, which has richer functionality.

“For the Xbox One, if there are in fact no meaningful subsidies, we believe a starting price of $399 makes sense given that the Xbox 360 Pro debuted at that price point in November 2005. Our estimate of the bill of materials for the Xbox One (based upon speculation regarding many of the specs) is around $325, suggesting that Microsoft could make a modest profit at the $399 price point. For the PS4, we remain confident that the new console will have a lower initial MSRP than the PS3, which had a lofty starting price of $599 […]. We expect the PS4 to debut at $349, as our estimate of the bill of materials is $275,” said Michael Pachter, an analyst with Wedbush Equity Research, in a research note.

Previously other analysts implied that Microsoft Xbox One would cost around $500 and will not be as cheap as expected given vast functionality of the machine. Nothing particular is known about the price of the PlayStation 4, but it should be generally similar due to the fact that the systems are based on comparable chips.

Both Microsoft’s third-generation Xbox as well as Sony’s PlayStation 4 are based on semi-custom AMD Fusion system-on-chips with eight Jaguar general-purpose x86 cores, AMD Radeon HD GCN architecture-derived graphics processors and other special-purpose hardware units. Both consoles will have hard disk drives as well as Blu-ray disc drives.

“In our view, the Xbox One is the more likely of the two new consoles to be subsidized due to its functionality. We believe the ability to watch live TV from a cable, telco, or satellite set-top box through Xbox One could entice an MSO to drive subscriptions through a subsidized box in exchange for a multi-year contract. The “always connected” requirement for the Xbox One likely means that a broadband connection will be required, suggesting to us that ISPs may have an incentive to offer a subsidy as well. In addition, Microsoft could conceivably subsidize the Xbox One through prepaid Xbox Live Gold subscriptions (as it has done on a limited basis in the past) or premium Skype functionality as well. Similarly, Sony could subsidize the PS4 through prepaid PlayStation Network subscriptions, but unlike Microsoft, it does not have a history of doing so. We believe that many of the multimedia functions demonstrated at the Xbox One reveal event could be emulated by Sony in the next year or so through a firmware update,” added Mr. Pachter.

Tags: Sony, Playstation, PlayStation 4, Xbox One, Orbis, Microsoft, Xbox, Durango, AMD, Jaguar, Radeon, ATI, 28nm, GCN

Discussion

Comments currently: 13
Discussion started: 06/04/13 03:04:50 AM
Latest comment: 08/25/13 05:40:45 AM
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1. 
Sony's price should be US$400 and less after Christmas. At this price, the consoles will sell like hotcakes. Sony should also throw in a couple of Sony/Universal movies and a couple of older versions of upcoming game titles as sweeteners for ambivalent parents. This is the moment in history when HSA took off and Intel was left in the dust. And on this occasion, there was no forced cross licensing of IP. Intel had to innovate something themselves but were clueless - "Let's take Ivy Bridge down another node again and increase the L3 and L4 cache", said the head engineer. "And we'll call it i9, as in the 9 lives of Ivy Bridge. It'll be our in-joke. OK guys?"

HSA explained for teenagers: http://www.youtube.com/wa...mbedded&v=MQcjEA3it90
3 3 [Posted by: linuxlowdown  | Date: 06/04/13 03:04:50 AM]
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To take Intel Down Lets hope this new Console price around US$300
3 1 [Posted by: xentar  | Date: 06/04/13 03:24:03 AM]
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agreed
0 0 [Posted by: mudi1  | Date: 07/07/13 02:02:42 AM]
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2. 
From what I've heard Sony is targeting $299 for the "entry" model PS4; and the bill of costs is a bit lower than guessed by Pachter. One of the more expensive components in the PS4 is the 8gb of GDDR5 memory, but which can be had at lower prices the more Sony buys. There have been murmurings that AMD's upcoming FM2+ platform will allow socketed GDDR5 chips to be used instead of DDR3. Like the AM3 chips FM2+ compatible processors will have both the GDDR5 memory controller developed for Sony, and the DDR3 controller.

If that is indeed what AMD is doing they'll be able to get a larger supply of GDDR5 memory chips; which in turn translates into a lower direct cost for Sony.

Sony also has some more cards to play in the software battle. Microsoft, as the saying goes, has already blown their load. We know everything the Xbox One will do... but not everything the PS4 can do. That difference means that claims of Xbox One having richer functionality... are premature.
2 0 [Posted by: Zerias  | Date: 06/04/13 03:18:05 AM]
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agreed
0 0 [Posted by: mudi1  | Date: 07/07/13 02:03:19 AM]
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3. 
I will buy PS4 even comes on price tag of 400$. And for xbox one I say no if even cheaper than ps4 reason they are Gaming console not fancy set-top box. And on ps4 we will get much better texture, physics, frame rates, details than xbox one.

But a real sad news i got for all AMD and Sony PS4 lovers that –PS4 will not support AMD HSA ……hey hey don’t worry this is a good decision, reality is we will not see HSA till 2015-2016 first reason is Sony want to save lot of punch for future, second is if Sony gives HSA support from day first than it will be suicide for Sony coz today developers are not friendly with HSA so Sony just giving some time to developers to become heterogeneous devs.

PS4 will give us world’s best gaming experience yes world’s best ,u remember before some time NVIDIA CEO jen-…………… (long name) said PS4 has weaker gpu and nvidia gpu is more powerful. can he give me in written that nvidia’s most powerful single gpu titan cost around 1000$ will beat PS4 in all upcoming games, answer he also knows- 1000$ nvidia titan can’t beat less than half costly PS4 while PS4 will beat TITAN very well in upcoming years.
Why –reason is ps3 with 256mb ram 256 mb video memory runs crysis 3 smoothly on HD while running same on pc we require 10X more powerful machine(magic of closed system) and PS4 have 15 times more memory and around 10X powerful gpu than PS3 now do simple math and calculate how much powerful pc u should have to beat PS4.


Buying a gaming pc today is madness coz PS4 will say one thing to all-“Rest In Peace”.

Why- actually we already knows that PS4 APU named liverpool have pc like 8 jaguar cores and 1152 GCN core as found in pc right….no wrong this is the real secret Liverpool’s gpu is not same as pc version actually it is badly modified and unlocked GCN, UNLOCKED GCN is the real word as very few of us know that performance of GCN gpu is locked by AMD to make more margins but in PS4 we will see UNLOCKED GCN -the REAL GCN.
So ……………..tight ur seatbelts to feel what GCN actually is and why it is made .
7 2 [Posted by: mudi1  | Date: 06/04/13 07:04:40 AM]
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I think these new consoles are aimed at everyday PC's where people may spend $300-800 on them, these folks are unlikely to upgrade for a game-- even if a graphics card is cheaper than these consoles-- especially since these consoles are more like media/internet machines than just gaming and compete with how those that get cheap PC's use their computers. In fact, I think the purpose of using an x86 CPU is more for HTPC use than for gaming port benefits.

But those that game on PC towers in excess of triple the cost of these consoles, this stuff isn't aimed at them and get defensive at comments that suggest no point in getting a PC anymore.

Don't get me wrong, I loved Halo 1 and 2 on PC, forever hoped the rest would come to PC; but now that Xbox One has no backwards compatibility, I can't fathom getting two machines for all Halos which would easily hit $800 after all the games (which I ruined for myself after seeing all the Youtube walkthroughs of 3, 4, Reach).

I'm not interested in any other console title with zero interest in PS4 as a result, so it seems less cost-effective for me to jump on board. But I know I'm not target market, so whatever.
0 0 [Posted by: lehpron  | Date: 06/04/13 10:22:58 AM]
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agreed
0 0 [Posted by: mudi1  | Date: 07/07/13 02:03:40 AM]
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4. 
Yes, yes, this is all fun and games, until we have to pay the over-priced games for consoles. Remember that billion that M$ will use for bribing game producers to release only for X-Box??
I see some interesting times ahead...
0 0 [Posted by: TAViX  | Date: 06/05/13 10:08:57 AM]
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agreed
0 0 [Posted by: mudi1  | Date: 07/07/13 02:04:00 AM]
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5. 
And oce you have paid your ~$400 for your shiny new console all that needs to be done is buy all the new titles again....which in most cases are nothing more than tweaked older titles
0 0 [Posted by: alpha0ne  | Date: 06/05/13 10:31:07 PM]
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agreed
0 0 [Posted by: mudi1  | Date: 07/07/13 02:04:17 AM]
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6. 
Still I would like to proceed for Xbox. I still don’t accept as true that they were full games. scheme with DRM constructed on the basis of allowing devs to profit from more revenue through controlling used game sales and halting persons lending computer discs/ piracy, it would negate that advantage to the develops by permitting 1 game sale to be shared fully between 10 persons, its completely hypocritical.Go to http://www.squidoo.com/the-new-Xbox-one
0 0 [Posted by: AudreWoodsmith  | Date: 08/25/13 05:40:45 AM]
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