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Sources have revealed that Microsoft is currently awaiting Sony’s reveal of the PS5 price before revealing the price for the Xbox Series X.
Intriguingly, both video games analyst Michael Pachter and former mid-2000s Microsoft executive Peter Moore revealed that Microsoft is waiting to undercut Sony in a podcast with Geoff Keighley. In fact, they claim that Microsoft is planning to undercut PlayStation’s price by $100!
“From what I’ve seen, Sony’s gonna have to charge $500 for the PS5 and Microsoft has a big balance sheet,” revealed analyst Michael Pachter, thanks VG24/7.
“If they wanna cut the price by $100 – just price below [PS5] and subsidise the first 10 million [units] – they will,” the analyst continued. “So, I think that they’re waiting to have Sony blink first and then they’ll reveal the price. Very likely $400.”
Ex-EA and Microsoft Executive Peter Moore echoed Pachter’s thoughts, stating that Microsoft is simply evaluating how big of a loss they can take at the start of the generation.
“Michael’s right; what both companies are going through right now is [asking] ‘how much can we afford to lose in the first 12 to 18 months?’ ‘what is our attach rate of software to hardware?’ ‘What are we willing to do in year one, two and three to hit 10 million [units]?’” Moore told the podcast.
“Microsoft right now – the stock price, the market cap – everything’s flying for them,” he added. “Does Satya [Nadella] say, you know, ‘this is our opportunity right now, as we did with Xbox 360, let’s get in, let’s price it right’?”
With PlayStation set to sell less PS5 units this year due to the increasing price of components, an even cheaper Xbox Series X could be a good move for Microsoft. We hope the PS5 price isn’t too high. With Xbox boss Phil Spencer claiming that Xbox will keep their console’s price “agile” amid the world’s current financial situation, we’d hope the PS5 price will follow suit.
Microsoft recently revealed a bunch of games for their next-gen Xbox Series X. If you want to hear our thoughts on the presentation, check out the new MSPoweruser Gamescast here.