The Xbox Series X not only aims to surpass the PlayStation 5 in terms of hardware specifications but is also determined to go all out against its rival by potentially offering a significantly lower retail price. According to recent analyses, Microsoft is willing to incur a substantial loss to make their next console generation priced “affordably,” thus attracting more customers. This is seen as a strategy to help them outperform Sony’s PlayStation 5 in sales, with expectations to significantly outpace the competition during the holiday season (which is typically a time when electronic products sell very well worldwide).
Specifically, in the latest episode of Geoff Keighley’s Bonus Round, analyst Michael Pachter from Wedbush Securities commented: It’s quite possible that the retail price of the Xbox Series X will be $400, significantly lower than the PlayStation 5’s $500. Michael stated: “Based on the information I’ve gathered, users will spend around $500 for each Sony PS5. Meanwhile, Microsoft has quite a substantial balance sheet. If they want their console price to be $100 lower, they would definitely be willing to do so without hesitation. I believe they are waiting to see what price Sony will set before finalizing the price and release date for the Xbox.”
Michael concluded: “I believe the Xbox Series X will launch in November this year, priced around $400. And fans will certainly be extremely satisfied with this price.”
Regardless of the PS5’s price, the Xbox Series X will definitely be much cheaper to attract users.
For those interested in the console market specifically and gaming in general, this scenario seems quite familiar as if it has happened before. In fact, this can be seen as a counterattack from Microsoft, as they have previously been the victim of Sony using the same clever tactic. At the E3 event in 2013, Microsoft revealed that their Xbox One would have a high price of $500, partly due to the Kinect camera. Just a few hours later, Sony announced that the PS4 would be priced at $400 – a crucial factor that helped them defeat their competitor in terms of product sales.
Peter Moore, a veteran in the gaming field who led Microsoft’s Xbox team through projects like the Xbox 360, also agrees with Michael’s assessment. He stated: “The financial situation of Microsoft is currently quite stable, from stock prices to market capitalization,… everything is great. Satya Nadella also believes: ‘This is the opportunity for us to create a miracle like we did with the Xbox 360. Let’s price our product well, accurately. Let’s leverage the current global crisis and the growing online demand. Let’s challenge Sony, dare them to price the PS5 at $500.’ If I were to return to the Xbox division, this is exactly what I would think of – reducing product prices.”
Currently, both Sony and Microsoft are keeping their pricing information for their new console generations under wraps. Sony is expected to hold an official PS5 launch event on June 2, while Microsoft has announced plans for monthly Xbox 20/20 livestreams to provide more information about their new model. In just a few months, the PS5 and Xbox Series X will officially hit the shelves worldwide. Therefore, the price war between these two relentless competitors is sure to be resolved soon. And let’s wait and see if Microsoft is willing to take a loss to defeat Sony in sales as experts predict.
According to tomsguide