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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
