Analyst: Xbox Series X to be $100 cheaper than PlayStation 5

News reaches us that an industry analyst is predicting that Microsoft will savagely undercut the price of the PlayStation 5 and sell the Xbox Series X at $100 less than their competitor.

“From what I’ve seen, Sony’s gonna have to charge $500 for the PS5 and Microsoft has a big balance sheet,” said the industry insider, “If they wanna cut the price by $100 – just price below [PS5] and subsidise the first 10 million [units] – they will. So, I think that they’re waiting to have Sony blink first and then they’ll reveal the price,” he commented, adding “Very likely $400.”

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An astounding prediction, who would be so bold to make that claim?

Oh, it’s Michael Pachter.

That’s “Xbox One to win this generation“, “The UK games retail market is a joke, with retailers pricing below cost to drive traffic“, “PS4 Can Render Games At 240 FPS“, “Activision to charge for online gaming“, “Destiny is a Halo Killer“, and “Apple will release a console“, Michael Pachter.

However, his claim was backed up by former EA and Microsoft executive Peter Moore. “Michael’s right,” he said, “What both companies are going through right now is [asking] ‘how much can we afford to lose in the first 12 to 18 months?’ ‘what is our attach rate of software to hardware?’ ‘What are we willing to do in year one, two and three to hit 10 million [units]?’”

That is true, both companies will be studying their balance sheets and working out the minimum price they can sell the console. However, losing $100 on 10 million consoles is a hit of one billion dollars. Most of the components in the two consoles are comparable, the Xbox Series X has a bigger GPU which will cost more but that is counterbalanced by Sony’s faster SSD and custom audio bobbins so they should be roughly the same price to manufacture.

We should also consider Microsoft’s focus which is not solely on the new console. The Series X does not have any exclusive games from Microsoft in the first year, but will also appear on Xbox One and PC as well. All first party games are also available on Games Pass and soon the Project xCloud streaming service. If they wanted to sell a new console by the bucketload then Project xCloud would not exist, neither would Game Pass on PC.

Meanwhile over at Sony it’s a different picture, PlayStation is by far their biggest earner so in the boardroom they get to call the shots.

How much will the new consoles be? We should find out soon…

Source: Geoff Keighly via VG247

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Written by
News Editor, very inappropriate, probs fancies your dad.

11 Comments

  1. Is that £100 cheaper than the ‘basic pack’ or the ‘premium pack’?

    Basic = 825 GB SSD
    Premium = 1650 GB SSD plus extras to be announced

    According to (more) rumours the two PS5 models that have been mentioned aren’t different spec, like most thought, but different sized SSDs. It would make more sense than different innards and less confusing to the general public.

    • Interesting, not heard that rumour before. I wonder what the cost of the memory chips of that density with the performance requirements of the PS5 are, the differentials between a 500GB and 1TB NVME M.2 retail PC SSD currently are eye watering

      And the expandable storage option being in place from the get go? Although again these will be expensive (the cheaper £70 500GB drives may simply be not good enough)

      • The prices were €499 basic and €599 premium. Prices in euros even though the (uk) Game store was mentioned but they have stores in Spain (so I’ve been told).

      • Yeah that’s bollocks. To convert to Euros the business would use the most up to date forecast for the dollar to euro conversion rate. They won’t use that till the very last minute to try to be as an accurate as possible.

        The post on Reddit that is the source is rubbish, basically.

        Also remember games are going to be huge – we’re already knocking on 100GB per game on this gen, the “Basic” model will have space for 6-7 games after you reserve space for OS, game capture etc, so another reason to say it’s bollocks.

      • Am I right in thinking that Cerny said in his tech insight that PS5 game installs wouldn’t be much bigger than PS4 games as there won’t be the need for data to be duplicated again and again like there is with the PS4?

      • Cerny explained it quite well in that thing that some people thought was going to be something else.

        The seek time on an SSD is so tiny you can afford to load multiple bits of data. With the PS4, you’d have to load a whole chunk of data at once. A whole city block in Spider-Man (seems to be the game used when explaining it), including buildings, streetlights, everything. And all the textures for those models.

        So a streetlight model, and the textures for it, have to be repeated in every block.

        With the SSD, you can just load them all individually, and only have them on disc once.

        So now you’ve wiped out the storage requirements of 100s of streetlights and replaced it with a single instance. And then do the same with everything else you’ve got in the game, and you can save a surprising amount of space. A couple of gigabytes suddenly goes down to 10s of megabytes instead.

        Quite reasonable to suspect those 100GB games are suddenly just 20 or 30.

        But then if everything is aiming for a 4K resolution, that then takes up more space. Hopefully an optional download for 4K textures becomes a thing. (Or I guess you need 1080p, 4K or both, in case you want to swap your PS5 between different TVs?)

        The other benefit could be how much memory the game uses. No need to keep as much loaded in memory if you can quickly load it from the SSD when you need it. That building behind you that you can’t see because you’re facing the other way? Just taking up memory waiting in case you turn around and it has to be there. Just load it while you’re turning round.

        Of course, give it enough time and games will be using all that memory for other things. And if people are already happy with a 100GB download for a game, and you now only need 30GB, why not just add more stuff and end up back at 100GB again? So probably smaller games to start with, then back to huge downloads in a couple of years.

  2. The question is how desperate Microsoft is to compete with Sony, and as they still struggle uphill badly, they need to do a lot of catching up. Could be they even start throwing money at people to make them buy their kit.

    • Its annoying when people are saying games are going to be bigger. If you listened to Cerny in the deep dive, he said games will be a lot smaller, due to no longer needing data multiplied throughout a file size. One of the perks of this new SSD

  3. That’s fine, the cheaper they go the easier it is to own both. Love competition, as does my wallet. Except Bake-off or Strictly, those competitions can do one.

  4. Oh well, i did say previously that i would be prepared to pay €500 for PS5 .. :/ And it wouldn’t surprise me that Xbox will do that as they are due their moment back in the sun so to speak.
    Regardless, i’ll be sticking with PS for the PS4 BC.

  5. I think Microsoft will do that phone contract offer and that’ll get a lot of people to switch. Whatever amount for 2 years and throw in game pass & gold. Perfect for those that don’t want to drop £500 on a new console.

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