Michael Pachter is a brilliant gaming analyst working for Wedbush Securities, a financial and investment firm. Michael Pachter, a financial wizard himself, is well-known for researching video-game related topics. His opinions and predictions, though usually greeted with bane by many in the gaming community, come to fruition more often than not. We gamers only understand games and how to play them. Michael Pachter, however, understands the business side of things. Sometimes that comes to a head when his predictions don’t coincide with the opinions of gamers. However, gamers tend to have to swallow their pride, as Michael Pachter’s theories usually prove true.
In an article on GameSpot, it was reported that “Pachter […] believes the Xbox One will retail for $400, while the PlayStation 4 will debut at $350.” Patcher said that his “pricing estimations are based on bill of materials figures of $275 for the PS4 and $325 for the Xbox One.” (Quotes pulled from an article on GameSpot by Eddie Makuch)
Michael Patcher went on to make the following statement about the Xbox One:
“We believe the ability to watch live TV from a cable, telco, or satellite set-top box through Xbox One could entice [a multi-system operator] to drive subscriptions through a subsidised box in exchange for a multi-year contract. The ‘always connected’ requirement for the Xbox One likely means that a broadband connection will be required, suggesting to us that [internet service providers] may have an incentive to offer a subsidy as well.” — Michael Pachter
(Quote pulled from an article on GameSpot by Eddie Makuch)
Michael Patcher’s studies and predictions are based on years of financial research, experience, and expertise. This time around, he feels that this console cycle will much less expensive for the consumer than the previous one. This is based on the fact that Sony and Microsoft have now perfected their craft since the last console generation, and it now costs them less to make a console and utilize the technology. Plus, the technlogy has been on the market for a few years now, and is cheaper to mass-produce than it was seven or eight years ago. The Xbox 360 debuted at $300-$400 (depending on the model) in 2005, and the PlayStation 3 debuted at $500-$600 (also depending on the model) the following year. However, the Nintendo Wii debuted at only $250, but the Wii U debuted at $300-$350, depending on the model. We already reported that Michael Pachter expects the Wii U to get a price drop sometime this year. Still, it looks like Nintendo’s console will once again be the cheapest on the market, which might help it some when the newer consoles come around and everyone is looking to upgrade. Right now, it’s still being compared to the Xbox 360 and PlayStation 3.
What do you lot think of Patcher’s analysis? Is he right on the money? Or is he dead wrong? Do you usually find him disagreeable, or somewhat reasonable in an ocean full of yapping fanboys? I now give you permission to comment below.