Analyst Predicts PS4 and Xbox 720 to Cost $400

Though it's only January, surely you're sick of all the next-gen talk already? Well then brace yourselves, as it's only going to get worse as we get closer to E3 and everyone throws their rumors and speculation into the hat. One analyst from Baird Equity Research has decided to make a relatively early speculation (i.e. before the consoles are even shown off or any solid details have arrived) by stating that he believes $400 is the number Microsoft and Sony will aim for with their latest consoles. The prediction was made when analyst Colin Sebastian talked with GamesIndustry.biz at this year's Consumer Electronics Show.

"Given the fragile state of the console game market, we expect the E3 trade show in June will take on added significance, most likely providing the industry with the first public opportunity to examine next-generation hardware," Sebastian said. "Our checks suggest that next-generation console hardware will be largely built from 'off the shelf' high-end PC components, along with hybrid physical/digital distribution models."

Sebastian believes that Microsoft will have an advantage with this when it comes to fully integrating their next console with Windows 8, as well as additional perks for all. "Moreover, a PC-based architecture (Intel chips in the case of Xbox) should have a number of advantages over custom-developed silicon: for one, the learning curve for software developers will be shorter than completely new technology. Second, the cost of production and retail price points should be lower than prior console launches."

So when does Sebastian expect these consoles to be for sale? Sebastian says Sony will try to launch in October and November for the next Xbox, based on his current data.

Source: GamesIndustry via Cinemablend