Xbox Series X will cost less than PS5, say Michael Pachter and Peter Moore

Microsoft could be replicating the Xbox 360 pricing model.

Xbox Series X Processor

According to analyst Michael Pachter and former Xbox executive Peter Moore, Xbox Series X will cost less than PS5 when it releases later this year.

The two believe that Microsoft has a significant opportunity to repeat the Xbox 360’s’ exploit, when the console was revealed to be costing less than PS3 and, even selling at a loss for a couple of years, it took advantage of that to take the lead in sales for a long time.

Pachter claimed – during a live broadcast with Geoff Keighley – he has elements that prompt him to believe that PS5 will cost around $500 and won’t be able to do better than that in terms of pricing. This alone builds up an opportunity for Xbox Series X to be in a better position compared to Xbox One seven years ago.

“From what I’ve seen, Sony’s gonna have to charge $500 for the PS5, and Microsoft has a big balance sheet,” the analyst said. A recent Bloomberg report is supporting this speculation.

“If they wanna cut the price by $100 – just price below [PS5] and subsidize the first 10 million [units] – they will. So, I think that they’re waiting to have Sony blink first and then they’ll reveal the price,” he revealed.

A PlayStation 5 reveal event is expected for the beginning of June, or by mid-June at least, and that would serve as the perfect occasion to share details on pricing.

Xbox Series X’s price is going to be “very likely $400,” according to Pachter, and Peter Moore agrees with that idea, even though that means that Microsoft would have to undertake a strong investment to do so.

“Microsoft right now – the stock price, the market cap – everything’s flying for them,” Moore said, adding elements to that idea as Xbox has what it takes to do the kind of investment required at this moment.

“Does Satya [Nadella, Microsoft CEO] say, you know, ‘this is our opportunity right now, as we did with Xbox 360, let’s get in, let’s price it right’?” is what is happening now at Microsoft, in his opinion.

Pricing is a much-debated topic and one that will have the ability to determine a big portion of the next-gen console war, as we’ve seen with PS4 and Xbox One through the current generation of gaming.

Former Xbox marketing boss believes that PS5 will cost less based on the specs sheet, which seemingly sees Xbox Series X going more for raw power rather than its competitor, and that would usually come at a cost.

However, it is also thought Microsoft could be revealing a cheaper Xbox Series S console in a matter of weeks, so it remains to be seen which that console’s part in the overall next-gen strategy from the company would be.