No Xbox One or PS4 price cuts at E3 - Analyst

Wedbush's Michael Pachter instead expects platform holders will drop price on previous generation systems by at least $50

Next week's Electronic Entertainment Expo in Los Angeles is sure to provide some big announcements, but a price cut for the Xbox One and PlayStation 4 isn't likely. That's according to Wedbush's Michael Pachter, who released an investor's note today sharing his expectations for the show.

"We do not expect price cuts for the Xbox One or PS4," Pachter said. "We do not expect Microsoft to permanently cut the price of the Xbox One without Kinect from $399, instead focusing on compelling bundles with first- and third-party content, with some of the applicable games included as free pack-ins... Although the price of the Xbox One has been discounted by $50 for much of 2015, we believe that the price will revert back to $399 by the time that the holidays arrive, particularly if sales pick up."

Pachter added that NPD data and the latest statements from Sony and Microsoft suggest that the PS4 is still significantly outselling the Xbox One, giving the PlayStation platform holder little incentive to make a price cut. The analyst instead expects Sony to take a similar approach to Microsoft, putting together new bundles or systems with larger capacity hard drives starting at the existing $399 price point.

E3 may yet see some price cuts, albeit on older generation hardware. Pachter said the Xbox 360 and PS3 bundles should drop by at least $50, calling those cuts "long overdue."

Related stories

UK Charts: FIFA 19 retains No.1 as Darksiders III makes No.32

Cyber Monday deals keeps market buoyant

By Christopher Dring

GameStop reports strong quarterly sales, $488.6 million loss

Asset impairment charge due to slumping stock price wipes out gains from Spider-Man, Red Dead Redemption 2 and Call of Duty: Black Ops 4

By Brendan Sinclair

Latest comments (2)

Paul Jace Merchandiser 3 years ago
Well that's why they call them analyst. If analyst and weather people(don't want to discriminate against women) were fired every time they were wrong there would currently be no one employed as an analyst or weather person.
1Sign inorRegisterto rate and reply

Sign in to contribute

Need an account? Register now.