The latest leaks suggest that PlayStation 5 will be more expensive than Xbox Series X, and that the price difference could reach a considerable figure, about 100 euros/dollars between the two consoles.
When we compare the power and specifications of PS5 against Xbox Series X it did not seem that the costs of both machines were very different, but the commercial strategy of both companies will be.
Microsoft would be willing to sell Xbox Series X at a loss, to be more competitive than PlayStation 5. In fact, Sony may as well lose money on the first million units sold, but your rival will be even more aggressive.
According to this leak, the Xbox Series X price will be announced only after PS5's, so that Microsoft has some margin to assess your rival's situation and sell your console cheaper.
The information comes from Michael Pachter, a well-known analyst in the video game industry, who was interviewed along with Peter Moore (former Xbox executive) on Periscope by Geoff Keighley, a journalist known for annually presenting The Game Awards.
Both agree that Microsoft's strategy will be to offer a lower price, to achieve better results than in the previous generation. While Sony relies heavily on PlayStation 5 for its future, its rival has other very profitable divisions that would allow it to make that financial effort.
Satya Nadella, the current CEO of Microsoft, has supported the Xbox division even as shareholders called for its closure, so it wouldn't be surprising to see him bet on the platform now that it has a clear opportunity.
It is Pachter, an analyst in the sector with many years of experience, who dares to affirm that "most likely" PlayStation 5 is about 100 dollars more expensive, which would mean around 100 euros in Spain and the rest of Europe. In his opinion, PlayStation 5 would cost $500, and Series X would stay at $400
Placing a console cheaper than it costs to manufacture is not uncommon during its first year of life, until manufacturing costs are reduced. Apart from later recovering with the profit margin, the companies also receive revenue from games, online services and peripherals.
The PlayStation 5 has long been expected to command a high price tag at launch, especially given a higher-than-expected cost for its fast SSD drive and built-in cooling.
Launching a console that is more expensive than a direct competitor can be dangerous, and history shows it: PS3 experienced a complex situation against to Xbox 360 for it, and this generation Xbox One also suffered compared to PS4, since for the same price it offered much less graphic power.
On the other hand, the rumored Xbox Series S would be the budget model of the console, without it being very clear if PlayStation 5 will also have a simpler version for those concerned about price.
While PlayStation brand loy alty is an important asset, and Sony owns some of the best studios in the world, a $100 more expensive PS5 could mean a serious problem for the company, as it is a figure that would make many future buyers change platforms.
