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Friday, 24 May 2013 07:19

Prices of Xbox One/PS4 to be less than expected

Written by David Stellmack

GameStop believes will be cheaper than 360/PS3 launch price

GameStop thinks that the fears of a very high launch price for the Xbox One and PlayStation 4 could be something that people are worrying too much about. In fact, the video gaming retailer’s chief financial officer, Rob Lloyd, predicted during the company’s post-earnings call that both new consoles will have a “lower opening price than the last cycle.”

To remind everyone, last time around the Xbox 360 broke cover with $300 and $400 versions, while the PlayStation 3 came in with $500 and $600 versions to start with. With all of the new technology and everything that is said to be included with the Xbox One and PlayStation 4, analysts we spoke with tell us that it might be hard to drive a price point that is less than the previous generation of consoles out of the starting gate.

“I am just not sure that either Microsoft or Sony can get a price point that is going to be less than the $400 of the higher end Xbox 360 at launch,” one analyst told us. “With all of the new technology right out of the gate, it would be hard for them to make that number work, but less than the high-end PlayStation 3 at $600 at launch, is something that I do think is likely,” the analyst added.

Cost will not be the only factor driving the pricing decision that both Microsoft and Sony will face deciding how to price the new consoles. Sony knows that it came in at a very high price initially for the PlayStation 3 and it knows that hurt sales at the start. The company will be very eager to have a price that is lower or equal to the Xbox One at launch, we would think.

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