Analyst Predicts Xbox One Price to be $399, PS4 Price to be $349

The retail price for the Xbox One will be $399 while the PS4 will be $349, predicted by Michael Pachter, an Analyst from Wedbush Morgan.

In a pre-E3 discussion with investors today, Pachter evaluates the cost of building the Xbox One console is priced at $325 per unit, while the PS4 is priced at $275 per unit. To make costs cheaper, Xbox may consider a subscription-based Xbox One model, sparking the rumor of a $299 version with a $15 Monthly Xbox Live Fee.

Pachter says, “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.”

He goes on to say, “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,”

If his predictions are true, how do you feel about these prices?