Former Electronic Arts and Xbox executive, Peter Moore, and Wedbush Securities analyst, Michael Pachter, have said that Microsoft is in a position to price the Xbox Series X lower than the PlayStation 5. The duo made their comments during a video chat with Geoff Keighley, in which they discussed the companies’ next-gen plans and challenges.
Pachter believes that Microsoft is waiting for Sony to “blink first” and reveal the PS5’s price because the company has a balance sheet big enough to undercut PS5’s price by at least $100. Moore agreed and said that he thinks both companies are currently considering how much they can afford to lose within the first 12 to 18 months.
“From what I’ve seen, Sony’s gonna have to charge $500 for the PS5 and Microsoft has a big balance sheet,” claimed Pachter. “If they want to cut the price by a hundred bucks – just price below and subsidize the first 10 million – they will. I think they’re waiting for Sony to blink first and then they’ll reveal the price.”
Pachter believes that the Xbox Series X will be priced at $400.
“Michael’s right; what both companies are going through right now is how much can we afford to lose in the first 12 to 18 months,” added Moore. “Microsoft right now – the stock price, the market cap – everything’s flying for them. Does Satya [Nadella] say, you know, this is our opportunity?”
You can listen to the conversation starting around the 10:30 mark at the source below.
Do our readers think Sony and Microsoft might make a loss on their next-gen consoles initially?
[Source: Geoff Keighley]