PS5 vs Xbox Series X: Analyst's price prediction for Microsoft's next-gen console could spell doom for the PlayStation 5
There could be trouble ahead for Sony and the PlayStation 5. While there have already been estimates of future sales for the Xbox Series X and PS5, with the latter selling more than the former, it’s likely these guesses have been based on higher price tags for Microsoft’s console. It is expected the Xbox Series X will cost more than its rival, due to its higher-specced components and overall greater perceived power. Estimates have generally ranged from US$500 to US$600 for the next-gen Xbox, while US$500 has been the steady figure suggested for the PS5.
However, the analyst Michael Pachter believes Microsoft will undercut Sony by possibly as much as US$100. If Sony does reveal a US$500 price tag for the PS5 this would mean US$400 for the Xbox Series X, and with affordability being a key factor among gamers in regard to a purchase, this much lower price would be difficult to ignore – especially for those who might be on the fence about which console to purchase. It’s already been argued that Sony might have to take a considerable loss on initial PS5 shipments, but such a price cut by Microsoft could spell doom for the rival.
Microsoft has a huge cash reserve of over US$136 billion; if the company sold 10 million Xbox Series X consoles at US$400 it would lose potentially US$1-2 billion in sales depending on the eventual price tag. But that loss can easily be soaked up by Microsoft’s incredibly healthy bank balance. Peter Moore, an executive who has worked with companies like Sega, EA, and Microsoft, agreed with Pachter’s prediction, which was made during a podcast with the game journalist Geoff Keighley. In this potential situation, arguably the best Sony could manage would be to initially price the PS5 at the same level but for a smaller number of units.