The PS4 has barely been revealed, and Microsoft won't say a darn thing about the Xbox 720 yet, but we're already seeing people predict who's going to defeat who. One notable analyst is saying the Xbox 720 price could be as little as $100.
At SXSW last month, Wedbush Securities analyst Michael Pachter revealed that he expects the Xbox 720 to outsell the PS4, and now he's letting us peek into his thought process.
Interestingly, Pachter says the new Xbox 720 price will be subsidized by cable companies or Internet providers, bringing the cost of the console down so long as users subscribe to its services. This would give Microsoft a huge price advantage against the PS4, unless Sony turns around and does something similar.
"The reason I think Microsoft wins, I think that you're going to get a subsidy," Pachter said to Game Trailers (via Now Gamer). "So I think the price for the next Xbox is going to be subsidised either by a cable TV company or an Internet service provider. I think ISPs have a reason, if you add broadband to get the next Xbox, we'll give it to you for 100 bucks. If you subscribe to our cable TV and sign up for a couple of years, we'll give you the next Xbox for 100 bucks.
"That's a gigantic advantage until Sony picks up the slack and does the same kind of thing and that's why I think TV is a killer app. I think you're going to see Xbox Live with tiered pricing, so if you get TV service you pay a little more because you get rid of your cable box. If you use Skype, they'll give you unlimited Skype calling to any place, even phones, for another few bucks.
"I think that's a really interesting thing. It's going get kids to say to their parents hey, get the Xbox because it's 100 bucks because we can talk to grandma and we get cable TV and I really want to play it. So I think they can win based on that. And Sony can level the playing field. Sony absolutely has the capability to catch up with their boxes, they're plenty powerful.
"But I think they win. And I think that you're going to see an accelerated sell-through of next generation boxes, first with Microsoft and their ancillary services, next from Sony when they add them. It's inevitable Sony will."
If true, this would no doubt make the Xbox 720 a formidable competitor. Would the low price point still attract users if the new system is always-online and blocks used games, as some rumors suggest? Some gamers have already pledged to switch allegiance just based on that possibility, to it will be interesting to see how Microsoft presents its new console going forward.
