Wedbush Morgan analyst Michael Pachter predicts that the Xbox One will cost $399, with the PlayStation 4 trailing at a more acceptable $349. The prices greatly differ from Amazon's recent placeholder prices.
The analyst made his predictions at a pre-E3 address to investors today, reports GamesIndustry.biz. He placed the PS4's build cost per unit at $275, with the Xbox One costing 50 dollars more at $325 per unit.
Pachter says that Microsoft is considering a subscription-based model for the Xbox One to offset the higher cost, contrary to Paul Thurrott's earlier report that the subscription has been scrapped by Microsoft. Of course, Thurrott also said that the Illumiroom would be present at the Xbox One's announcement, though it certainly was not.
Pachter is adamant that the Xbox One will be subsidized, stating that it could be done through a subscription contract from a broadcast, cable or ISP provider.
"We believe the ability to watch live TV from a cable, telco, or satellite set-top box through Xbox One could entice an MSO to drive subscriptions through a subsidized 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 ISPs may have an incentive to offer a subsidy as well.
"In addition, Microsoft could conceivably subsidize the Xbox One through prepaid Xbox Live Gold subscriptions (as it has done on a limited basis in the past) or premium Skype functionality as well. Similarly, Sony could subsidize the PS4 through prepaid PlayStation Network subscriptions, but unlike Microsoft, it does not have a history of doing so," he added.
