Analyst Thinks $299 Might Be The "Magic" Number For PS4
Even though the reaction to Sony's PlayStation 4 announcement has been mostly positive, we have yet to see a solidified launch date and price.
And of course, both are important. Recently, we'd heard from various sources that the new console will have a couple of models, one priced at $430 and the other priced at $530. That sounds more than reasonable to us, but one analyst believes Sony might go even lower.
In speaking to GamesIndustry International, Inside Network analyst Billy Pidgeon said the "magic price point" for the PS4 is actually only $299.
"I'd like to see maybe two models, one under $300 and one under $400 would be ideal. $299 is the magic price point. I think this current generation took way too long to get there. It has to be under $400 and honestly if they could subsidize it further and take more of a hit, it might be worth their while in the long run."
But regardless of price, Pidgeon seems to believe that both the PS4 and Xbox 720 will initially see slower sales out of the gate. This means that both manufacturers will continue to back the current consoles for some time.
"Uptake during the first year is going to be slower than people expect. And to keep a viable business in terms of profit margins, they're going to have to do their best to keep their current-gen platforms viable as they're perhaps moving into next-gen more slowly than they did last time. Historically, we've seen generational transitions where the previous generation just dropped off a cliff when the new console came out, but that would really hurt either Sony or Microsoft if that happened."
Yes, the industry is changing. But in recent generations, Sony has never allowed their older systems to "drop off a cliff" when the new console came out; the PS1 and PS2 continued to sell very well for several years after their successors were on store shelves. There's no doubt the same thing will happen with the PS3. As for price, $299 may be too much to hope for...
2/22/2013 11:27:46 AM Ben Dutka