Sony recently dropped the price of the PlayStation 4 to bring it into line with the Xbox One, however Wedbush Securities' Michael Pachter has told Fortune that the PlayStation 4 price cut won't "make much difference at all", and if Microsoft wants to win it will need to drop the price of the Xbox One.
"Microsoft should cut price only if it cares about how many consoles it sells," he added.
Pachter went on to detail the strengths of Microsoft's bundling strategy:
"First-party bundles cost around $2 and have a perceived value of $50, so they make a ton of sense. Third-party bundles are more expensive, but in many cases [are] associated with one console over the other…Even third party bundles cost only around $40, and the perceived benefit is $50 or more… Thus, bundles always make more sense."
Pachter noted that he expects the PlayStation 4 to outsell the Xbox One worldwide this holiday, but things could be close in the United States:
"The PlayStation 4 will outsell the Xbox One globally this holiday, and they will be pretty close in the US. Sony probably wins, however, as it has a great brand and is doing a great job marketing."
While Pachter expects Microsoft and Sony to both perform strongly this holiday, his diagnosis for Nintendo is grim. "Nintendo has no chance to be successful in consoles this holiday," he concluded.
Source:
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