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...
Tags: ps4, playstation 4, ps4 price, ps4 cost
2/22/2013 11:27:46 AM Ben Dutka
Put this on your webpage or blog:
Email this to a friend
Follow PSX Extreme on Twitter
Comments (79 posts)
Clamedeus
Friday, February 22, 2013 @ 12:38:58 PM
Norrin Radd
Friday, February 22, 2013 @ 11:49:13 AM
Reply
slugga_status
Friday, February 22, 2013 @ 11:53:39 AM
Reply
ace_boon_coon
Friday, February 22, 2013 @ 12:08:28 PM
Reply
Highlander
Friday, February 22, 2013 @ 12:40:05 PM
Simcoe
Friday, February 22, 2013 @ 12:49:33 PM
WorldEndsWithMe
Friday, February 22, 2013 @ 2:57:34 PM
___________
Saturday, February 23, 2013 @ 7:53:40 AM
richfiles
Monday, February 25, 2013 @ 4:57:16 PM
I know they'll have early adopters, and that's very good. Despite my financial hardships, I know they feel they can establish a new console at the end of the year, so more power to them.
Just don't expect me buying one till the bugs are worked out and a year or two has already passed. I'll catch the rest of you guys on the PS4 then! :P
PSN French
Friday, February 22, 2013 @ 12:23:15 PM
Reply
Simcoe
Friday, February 22, 2013 @ 12:31:53 PM
Fane1024
Sunday, February 24, 2013 @ 6:33:12 AM
Nas Is Like
Friday, February 22, 2013 @ 12:23:20 PM
Reply
Solid Fantasy
Friday, February 22, 2013 @ 12:25:52 PM
Reply
Crabba
Friday, February 22, 2013 @ 4:13:46 PM
Highlander
Friday, February 22, 2013 @ 12:40:52 PM
Cesar_ser_4
Friday, February 22, 2013 @ 7:49:31 PM
Gabriel013
Monday, February 25, 2013 @ 2:14:35 AM
Gabriel013
Monday, February 25, 2013 @ 2:15:57 AM
ethird1
Friday, February 22, 2013 @ 1:11:31 PM
Reply
Have they not learned yet? 299 IS the price that will make everyone buy it and will allow the 3rd parties to make a buck.
End of Line.
Highlander
Friday, February 22, 2013 @ 1:24:07 PM
Gabriel013
Monday, February 25, 2013 @ 2:19:02 AM
I REALLY don't want Sony to scrimp on making this thing last the whole of the expected lifespan of the generation just for the sake of making it cheaper.
SaiyanSempai
Friday, February 22, 2013 @ 1:37:02 PM
Reply
Not to mention that my friend just bought a new Nvidia graphics card for his computer that ran over $400, and it doesn't even have 8 GB of DDR5 memory.
And none of those even come with a nice controller or a BD drive.
You get what you pay for, especially when it comes to new tech. People need to get their head out of the clouds and start putting things into perspective. You want something? It will cost money.
Last edited by SaiyanSempai on 2/22/2013 1:44:13 PM
Crabba
Friday, February 22, 2013 @ 4:17:51 PM
Underdog15
Friday, February 22, 2013 @ 7:53:51 PM
Crabba
Friday, February 22, 2013 @ 10:20:08 PM
I'd be ecstatic if Sony would put more powerful hardware in the PS4 and set a higher pricepoint, but that's obviously not the case, and I can unfortunately see why with all the complaints early in the PS3's life about the cost... Flipside of that coin is Sony still has to make people want to upgrade, and to do that they have to make the PS4 powerful enough, which I don't feel it is with the specs revealed...
Gabriel013
Monday, February 25, 2013 @ 2:21:25 AM
Beamboom
Friday, February 22, 2013 @ 1:47:54 PM
Reply
This price is obviously too low, but if the market now all of a sudden expect such a price, well then the real price - who othervice would be received as fair - could all of a sudden be perceived as too expensive.
Last edited by Beamboom on 2/22/2013 1:48:19 PM
Highlander
Friday, February 22, 2013 @ 1:56:53 PM
Beamboom
Friday, February 22, 2013 @ 2:47:07 PM
But seriously, how is the media coverage of the PS4 over at your side of the planet? Cause here in Norway it really is 99% pure excitement and positivity.
Ironically, the place I've found most negativity about the next PS is in the comments right here at PSXE...!
Highlander
Friday, February 22, 2013 @ 2:51:47 PM
I don't know what the media coverage is here, I presume it's positive also. The point I was making was that this analysts price prediction is just the kind of crap that happened almost 7 years ago when PS3 announcement was imminent. Unrealistic price rumors are dangerous.
WorldEndsWithMe
Friday, February 22, 2013 @ 3:02:16 PM
Highlander
Friday, February 22, 2013 @ 1:59:33 PM
AcHiLLiA
Friday, February 22, 2013 @ 2:35:54 PM
WorldEndsWithMe
Friday, February 22, 2013 @ 3:03:19 PM
AcHiLLiA
Friday, February 22, 2013 @ 3:17:32 PM
Last edited by AcHiLLiA on 2/22/2013 3:21:42 PM
Cesar_ser_4
Friday, February 22, 2013 @ 9:10:10 PM
Highlander
Friday, February 22, 2013 @ 1:58:55 PM
Reply
I'm still waiting for the announcement of the second most important component in the system - the Miraculous Internet Latency Removal chip set - aka MITRe(TM). With MITRe installed, your streamed gameplay from across the Net won't suffer from unplayable lag in real time control games, such as fighters like Soul Calibur.
Want a demonstration of how bad lag can be on a streamed game? Get two PS3s, hook them to the Net, start the same multiplayer game on both using different accounts. Get both players into the same game room and watch the character logged into the fist PS3 on the second PS3's screen, watch the lag between controller input and movement on the second system's screen. That my friends is what you are looking at in the future for streamed gameplay without the MITRe(TM) chip...
Beamboom
Friday, February 22, 2013 @ 2:48:45 PM
Highlander
Friday, February 22, 2013 @ 2:55:38 PM
Last edited by Highlander on 2/22/2013 2:56:14 PM
WorldEndsWithMe
Friday, February 22, 2013 @ 3:05:28 PM
darxed
Friday, February 22, 2013 @ 3:14:02 PM
Beamboom
Friday, February 22, 2013 @ 3:29:46 PM
When did they say the stream service never runs any game code locally (what clip, do you even have roughly the time)?
Seriously, I am wondering, I never watched the video presentation, only read the summaries and have not seen anything written about this.
I can not think of any other way to avoid network latency than to cache code.
@World,
Same to you, in what context was that preloading feature presented, was it in regards to the stream service? You know what clip it can be seen?
Last edited by Beamboom on 2/22/2013 3:31:23 PM
maxpontiac
Friday, February 22, 2013 @ 3:55:17 PM
bigrailer19
Friday, February 22, 2013 @ 5:06:41 PM
WorldEndsWithMe
Friday, February 22, 2013 @ 6:04:30 PM
Highlander is saying they won't be delivering on what they said was possible, which I hope isn't true.
Simcoe
Friday, February 22, 2013 @ 8:34:21 PM
Cesar_ser_4
Friday, February 22, 2013 @ 9:14:27 PM
Highlander
Friday, February 22, 2013 @ 10:08:55 PM
But, let's suppose that they wanted to try emulating the CellBE on their 8 jaquar core system. You have a simple problem to overcome, it's actually impossible to do. The Cell BE runs at 3GHz, the Jaguar cores in the PS4 cpu will run at a substantially lower clock rate. The CEll BE has 7 cores running, the Januar has 8, with the overheads involved in emulating a CPU you need the system you are running the emulation on to be significantly faster than the system you are emulating. Since the Jaguars can't even issue an instruction as frequently as the Cell BE can, how do you propose to perform any level of local emulation of the Cell? And please, let's not pussy foot around this any longer, you can't emulate a 7 core CPU running at 3GHz on an 8 core CPU using a completely different instruction set and a significantly lower clock speed, it is simply impossible.
So, no local execution, therefore everything runs in the cloud, therefore you are entirely dependent on the network latency for the ability to control fast games.
Worlds, I don't care how impressed you were with how little lag there was, the lag is there and it's appreciable. You can color this however you want, but it doesn't alter fundamental facts concerning Internet latency.
@Max, I made no quantification of how bad the lag was from your personal perspective, the point is that it is appreciable.
Simcoe, short of a miracle, you can't get the lag out of the service without loading and running the game locally. There is an inherent network lag just on the hops from your console to your router and then on to your ISP's perimeter router, even if Gaikai had a game server running right at the perimeter of your ISP you would still see some lag.
Cesar_ser_4
Indeed, there will be pixelation trying to send a truly 720p video stream down anyone's Internet link, and if you have more than one gamer using the service at once in most any residence your Net is gonna saturate immediately. People here don't get the problem here, it's like the thought of emulating a 7 code CPU running at 3GHz on an 8core CPU running under 2GHz, it's pie in the sky at best.
Last edited by Highlander on 2/22/2013 10:09:29 PM
Highlander
Friday, February 22, 2013 @ 2:06:12 PM
gumbi
Friday, February 22, 2013 @ 2:07:41 PM
Reply
I don't understand this mentality. How is it totally acceptable for the latest mobile device or iThing to be $600 - $1000, but a new console can't be more than $300?
I'm fully prepared for a $499 launch tag. Maybe with a lesser entry model for $399. Telling everyone it should be $299 is just setting the unknowing up for disappointment and frustration.
WorldEndsWithMe
Friday, February 22, 2013 @ 3:09:12 PM
WorldEndsWithMe
Friday, February 22, 2013 @ 3:08:18 PM
Reply
CrusaderForever
Friday, February 22, 2013 @ 3:13:58 PM
Reply
Fane1024
Sunday, February 24, 2013 @ 6:43:27 AM
amonte64
Friday, February 22, 2013 @ 5:04:53 PM
Reply
On price, $300 isn't impossible, Sony could sell at a loss. Also, Wii U cost what it does because of the controller, drop the controller and how much would it cost? $200-250? exactly. PS4 could range from $300-$400 with different bundles. Whether people want to admit it or not, $300 is the sweet spot.
bigrailer19
Friday, February 22, 2013 @ 5:16:08 PM
Fane1024
Sunday, February 24, 2013 @ 6:53:06 AM
ethird1
Friday, February 22, 2013 @ 5:55:11 PM
Reply
News flash kiddos, not many systems are going to be sold if that system is over 450 bucks. So if not alot of systems are sold then even less games are going to be sold.
Sony will make behind the doors deals in order to compensate for the lack of games sold in the beginning. They will let the system see what it can sell to the dumbasses willing to pay 600 dollars for a game system. They will continue to do so for as long as they can until they start to see it fail then they will lower it down. JUST LIKE THE PS3. The sales of the ps3, with the pricecut, will help soften the low sales of the PS4. If the ps4 will sale for 450 or higher.
ethird1
Friday, February 22, 2013 @ 5:58:02 PM
Phones do so much more than the ps3, and is designed to be socially important for many things in life, including entertainment.
The ps4 is an entertainment system. Period.
You lose.
WorldEndsWithMe
Friday, February 22, 2013 @ 6:11:30 PM
___________
Saturday, February 23, 2013 @ 7:59:35 AM
Reply
obviously depending on how much its costing $ony, and that runs of the deal they have with AMD.
but through a mass production system such as this, and $ony know they NEED to be competitive, 350 maybe max for the base system sounds about right.
phade2blaq
Sunday, February 24, 2013 @ 11:16:06 AM
Reply
Highlander
Sunday, February 24, 2013 @ 6:51:48 PM
DjStiv3
Sunday, February 24, 2013 @ 1:34:21 PM
Reply
of course thats the "magic" number
but not only is it NOT realistic its stupid to think that it will even happen for SOO many reasons heres a few
-hardware
-ps3 still selling & ebing supported
-vitas pricetag why would it cost the same?
-wii u is shit and its 300
need i go on? what a retard

See Full Image









Highlander
Reply
Friday, February 22, 2013 @ 11:46:27 AM