Analysts – don’t you just love them? Forever guessing the future of the gaming industry, and usually getting it wrong – these guys still make more than most of us can dream about. Their latest prediction concerns the price point of the forthcoming next-generation consoles, and there is some good news for those that were planning on taking out second mortgages to fund their purchase.
Colin Sabastian of Baird Equity Research, says that after speaking with various industry professionals he has managed to predict that the new consoles from Sony and Microsoft will weigh in around a not unreasonable $400. These price points indicate that the major console manufacturers will likely make a loss on the hardware for the first few years of sales.
“Our checks suggest that next-generation console hardware will be largely built from ‘off the shelf’ high-end PC components, along with hybrid physical/digital distribution models, enhanced voice controls and motion sensing (Kinect integration with every Xbox), and broad multi-media capabilities,” he stated.
“Moreover, a PC-based architecture (Intel chips in the case of Xbox) should have a number of advantages over custom-developed silicon: for one, the learning curve for software developers will be shorter than completely new technology.
“Second, the cost of production and retail price points should be lower than prior console launches.
“Third, it will be easier to build online services around PC chip architecture, including flexible business models (free-to-play, subscriptions) and multi-media (over the top) content offerings. For Microsoft, this design will also allow for more integration with Windows 8 and Windows Mobile devices.”
Sabastian also added that he predicted we would see the future Xbox around November this year, but that the PS4 would likely be delayed, possibly into 2014.
Source: GamesIndustry International