The Xbox One u-turn on digital rights policies will see the platform claw back consumer belief in the platform and will sell as many units as the PS4, Wedbush analyst Michael Pachter has said.

"As far as today's announcement, we think that gamers will rejoice, and the focus will shift from Microsoft's onerous policies to the price differential between the Xbox One (at $499) and the PS4 (at $399)," wrote Pachter in a research note released today.

However, Pachter does not believe the price difference will prevent the Xbox One from matching the performance of the PS4.

"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," he wrote.

Should the Xbox One fail to match sales of the PS4, Pachter believes Microsoft is in a position to react.

"If we are wrong, we think that Microsoft is prepared to lower price next year," he concluded.

Source: Wedbush Quick Note