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xbox one11111111111111 -

All publishers will "enable trade-ins and used gaming on the Xbox One due to fears of a potential backlash" despite the facility to control such usage being available to them on Xbox One, Wedbush analyst Michael Pachter has said.

Whilst impressed by the software line-up on Xbox One, Pachter believes it was Sony which "won the first skirmish in the next-gen console battle".

"Despite our reservations about the Xbox One's $499 price point, we were impressed with the Microsoft presentation due in large part to the number of software exclusives that the console will offer. In our view, the Xbox One's release slate thus far should hold greater appeal among hardcore gamers than the PS4's, which includes more indie titles," wrote Pachter in his E3 review.

He added: "Microsoft feels confident in its ability to prove the value proposition that the Xbox One represents through the integration of features such as Kinect and Skype; however, we believe many gamers will remain unconvinced, as they would prefer that the extra $100 goes to purchasing key games, as opposed to voice controls or HD conversations."

Regarding the PS4, he wrote: "The most important announcements from Sony regarding the PS4 related to pricing, used gaming, and 'always connected' concerns. The PS4 will debut at $399, a full $100 below the Xbox One's $499. We note that the Xbox 360 has won the current-gen console cycle due in part to a more affordable initial price point for its most popular console of $399, which was $200 below PS3's initial $599 price tag. We believe the tables have turned for the next-gen console cycle, with Sony likely to gain some market share back from Microsoft due to $100 of savings provided to the consumer."

"Sony helped itself further through its treatment of used gaming. PS4 will have no new restrictions on used gaming, unlike the Xbox One, which essentially leaves the decision up to the individual publishers. Although we continue to believe that the publishers will all enable trade-ins and used gaming on the Xbox One due to fears of a potential backlash, Microsoft undoubtedly angered a percentage of gamers by giving publishers this option in the first place. In addition, Sony appears to have ruled out unpopular transfer fees, while Microsoft has not, again leaving it up to the publishers," he wrote. "Finally, PS4 does not require an internet connection for gameplay, whereas Xbox One allows offline gaming for up to 24 hours before an internet connection must be re-established for authentication purposes."

All that said, Pachter believes both systems will prove popular at launch with core gamer, "likely resulting in sellouts at GameStop for the first few months of release".

He add: "However, Xbox One's higher price point and Microsoft's approaches to used gaming and 'always on' will likely cost Xbox One some market share in the first year or so of the cycle. PS4 will be the clear beneficiary, and we believe that Sony's refreshing approach to next-gen gaming made it the clear winner of this year's E3."

Regarding release dates, Pachter expects the PS4 in stores prior to Black Friday, with the Xbox One also in stores during November.

Source: Pachter's E3 Review

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User Comments

Woffls's Avatar


Yeah, to begin with. When the user base increases and people are invested in the platform, they'll leverage that and enable DRM on new games.

I'm not at all comfortable investing in a platform with the capabilities of Xbone.
Posted 21:34 on 16 June 2013


I mean this isn't a stupid analysis, to sell games and still have 'fans' publishers will likely concede to any pressure over DRM issues, eventually. Looking at Ubisoft and the backlash of PC gamers having to be online for single player portions of the games meant they removed it altogether. It will really depend on us, whether we buy the consoles, and how much of a fuss we'll kick up to publishers and Ms over this.

Though, I can bet EA won't back down, I can believe. They're use to taking the heat from gamers and such, and would mean a bit more of a controlled money flow for them.
Posted 19:55 on 16 June 2013
bloody27's Avatar


stupid xbox one. it would take me half a year to start filling my living room with HDD. 500GB? required instal full game on HDD?

microsoft concept for a mediacenter is ALL wrong
Posted 11:01 on 16 June 2013
abr307's Avatar

abr307@ Blind2Society

“In our role as a game publisher, Microsoft Studios will enable you to give your games to friends or trade in your Xbox One games at participating retailers. Third party publishers may opt in or out of supporting game resale and may set up business terms or transfer fees with retailers. Microsoft does not receive any compensation as part of this. In addition, third party publishers can enable you to give games to friends.

We designed Xbox One so game publishers can enable you to trade in your games at participating retailers. Microsoft does not charge a platform fee to retailers, publishers, or consumers for enabling transfer of these games.”
Posted 02:04 on 16 June 2013
Blind2Society's Avatar


Of course publishers will allow it. It will still have to conform to Microgreed's terrible restrictions. Each game can only change hands once and only to people on your friends list. And if you want to sell, you can only sell to approved retailers.

Also, this has to do with a lot more than just price points and policies. Look at how Microgreed is talking to the consumers. They talk to us like we are stupid, can't think for ourselves and don't live in the real world. They act like only they know what's good for the consumer. Just have a look at Don Mattrick's post E3 interview as case in point.
Posted 17:50 on 15 June 2013
altaranga's Avatar


I feel a lot happier now Pachter's got involved.
Posted 23:31 on 14 June 2013
MrAusnadian's Avatar


Microsoft should've build the voice command functionality into the Xbox itself and made the Kinect camera an add-on for $59.99.
Posted 22:15 on 14 June 2013
Endless's Avatar

Endless@ saintaqua

It doesn't? Being somewhat of an analyst myself I'm pretty confident that part of my job is analysing information, running scenarios and presenting my views on those findings. We're all analysts, some people just get paid to do it ;)
Posted 20:48 on 14 June 2013
saintaqua's Avatar


This from the guy who also said xboxone would be $400 just days before MS said $500.
Why does anyone listen to him? Even I can and have predicted a few things here and there. That doesn't make me an analyst!
Posted 19:10 on 14 June 2013
CheekyLee's Avatar


Pachter says we're ok? Time to start REALLY worrying.
Posted 19:01 on 14 June 2013
FantasyMeister's Avatar


I think Kinect is more difficult to force on gamers than Microsoft think. Digital is easier, only 100 years or so of people buying hard copies of things to work around, but Kinect is trying to get everyone to stop pushing buttons and flipping switches, we've been doing that for millenia.
Posted 18:27 on 14 June 2013
rico_rico's Avatar


ms could adopt lower price below 399$ if Kinect wasn't include I don't think Kinect will be available in every game so how ms strategy still unknown for my way of view ms is fighting us the gamers
Posted 18:21 on 14 June 2013
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