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Next generation systems from Sony and Microsoft will launch at between $350 and $400, Baird Equity Research's Colin Sebastian has forecast in a note released to investors.

Sebastian obtained this information at CES after spending time with "a number of companies involved in video game development and distribution".

This kind of price range is in line with what Microsoft achieved with its 20GB Xbox 360, which launched at $399 in 2005. The PS3, however, hit stores a year later priced $499 and $599.

Sebastian expects the new consoles to be ready for public consumption come E3.

"Given the fragile state of the console game market, we expect the E3 trade show in June will take on added significance, most likely providing the industry with the first public opportunity to examine next-generation hardware," he wrote.

And the new systems won't take long to hit stores, with the PS4 expected in October, followed by the next Xbox in November. Although "early production issues with Sony's PS4" have been mentioned.

Regarding the components of the new consoles, Sebastian says the platform holders aren't investing millions in the development of custom parts.

"Our checks suggest that next-generation console hardware will be largely built from 'off the shelf' high-end PC components, along with hybrid physical/digital distribution models, enhanced voice controls and motion sensing (Kinect integration with every Xbox), and broad multi-media capabilities," he explained.

"Moreover, a PC-based architecture (Intel chips in the case of Xbox) should have a number of advantages over custom-developed silicon: for one, the learning curve for software developers will be shorter than completely new technology. Second, the cost of production and retail price points should be lower than prior console launches." Analysis

Given that both platforms are expected to sport pretty big improvements in graphical horsepower, launching the PS4 at a price point equal to or cheaper than the next Xbox is essential for Sony if it is to hit the ground running in the next generation.

Source: Gamesindustry Internatinal

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User Comments

killertheif's Avatar


if it cost 200 to 400 bucks i will not buy either where i have other console in my home
Posted 22:11 on 14 January 2013
munkee's Avatar


I'm not too bothered about backwards compatibility as I'll likely keep my PS3. I still have my PS1/2 as well :)
Posted 16:28 on 14 January 2013
tvr77's Avatar

tvr77@ 87Sarah

Yeah, good point.

Iv'e been putting cash aside as well but iv'e dipped it a few times so its not growing much anymore.

The backwards compatibility option is a big thing for me to and i'm sure for many others but i'm unsure what Sony will do cause it was phased out of the PS3 fairly quick and they did it without to much backlash.
Posted 15:26 on 14 January 2013
87Sarah's Avatar


Hmmm I should think they would tvr, after all, you can access all your information through Playstation website so why not just be able to use the same ID?

I'd love to buy this on day one but have never been able to afford it before. I may even start putting aside some money each month to make this happen.

If it's not backwards compatible though it will put me off buying it for a few years as I have too many games to catch up on on PS3 as it is.
Posted 15:10 on 14 January 2013
tvr77's Avatar


Me too, a day one PS4 purchse for me, i shouldn't but i can't help myself. I wonder if our profiles, data and trophies etc will carry over to next gen systems.
Posted 14:51 on 14 January 2013
munkee's Avatar


I'll buy it (PS4) launch day and go hungry for a month. My girlfriend had better not complain because all of my money goes on her every other month. I've never been in a financial position to do a launch day purchase before. So, I'm looking forward to this one. Might even go to a midnight launch just to get caught up in the hype :)
Posted 13:45 on 14 January 2013
Clockpunk's Avatar


I can see £325-330 as the starting pricepoint... and I'll bite at that (for the XBox successor)
Posted 13:19 on 14 January 2013
dudester's Avatar


We always seem to have to pay more.
Posted 13:17 on 14 January 2013
EverTheOptimist's Avatar


So maybe £300-£400 for us in the UK?
Posted 13:09 on 14 January 2013
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