PlayStation 5 could be more expensive than the Xbox Series X? Price war raging between the two consoles

Soon, we’ll know exactly this price for the PlayStation 5 and Xbox series X. However, it seems that Microsoft is willing to compensate for a significant initial loss in order to slow down the competition.

Barring any surprise, we’ll finally be able to find out the rest of the details about the PlayStation 5 and Xbox series, including the price, between May and July. Although we already know their technical characteristics and, in the case of the Microsoft console, some of their first games, we believe that the cost of both offers is the most interesting data for consumers. The only thing we can expect is that neither of them will be cheap.

Microsoft would wait for Sony to announce the price first. The Xbox Series X could be up to $100 cheaper

After the reports and rumors that have surfaced in recent weeks, it seems that a price war between Microsoft and Sony is looming. Indeed, the Japanese company is waiting for the decision of its main competitor. At first, it was believed that the Xbox series X would be more expensive due to the technical superiority of its GPU – the famous 12 teraflops – but we are no longer so sure about this belief. It’s likely that the guys from Redmond have an ace up their sleeve that could turn the tide in their favor.

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Michael Pachter, one of the most respected – and controversial – analysts in the video games industry, spoke with Geoff Keighley to discuss the issue. Pachter suggested that, far from what we all think, it is Microsoft that is waiting for Sony to make the first move. According to him, the Xbox Series X could be up to $100 cheaper than the PlayStation 5.

The analyst also believes that the PlayStation 5 will come on the market with a price of 500 dollars. Unlike Microsoft, however, Japan would not have as much flexibility to cut costs. The components of the PS5, especially its cooling system, NVME SSD and DRAM, have driven up the price of the console. There are several factors for this, from the choice of technology to the scarcity of parts due to the high demand.

“If they want to lower the price by $100, just below the price of PS5, and subsidize the first 10 million units, they will do it. I think they’re waiting for Sony to blink first and then announce the price. It will most likely cost $400”.

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Pachter was not the only one involved in the conversation. Peter Moore, a former senior executive at Electronic Arts and Microsoft, said the two companies are looking at the impact of selling their consoles at a loss. Selling them at a price below production costs would not be a new strategy for either company. It is common for them to assume losses per unit when launching a console on the market in order to capture the market in the first few months.

Moore says, however, that Microsoft has more room for adjustment in terms of price, as it currently enjoys an enviable economic strength. “Everything is flying in their favor at the moment, the price of their shares, their market capitalization. Satya Nadella [Microsoft’s CEO] would say: ‘This is our opportunity, just like we did with the Xbox 360, let’s get it right’,” he concluded.