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Forums - Sales - Analyst predicts: Xbox One at $400; PlayStation 4 at $350 + BOM for each console

Seriously, these guys are paid to do this? The BOM seems low, especially with the very nice APU's the systems will have. On top of that, the price of a system is more than just the BOM, so saying a company will make a "little profit" by subracting BOM from a possible wholesale price is just plain dumb.

It's possible that the systems will sell at $350-$400, but only if they sell at a loss. When you consider:

-Wii U was sold at a loss at $350
-PS360 is still around $299
-PS4 and XBOne are both state-of-the-art
-Both Sony and MS have stated intentions to continue pushing PS360 for at least a year and will introduce the new systems slowly

...I think it is fairly safe to say the systems will be at least $399 and both companies will be OK with modest sales for the first year while they streamline manufacturing and build an install base to justify games support. I expect $400-$550 starting prices. Anything less will likely mean unecessary and crippling losses.

Of course AMD could be taking big losses at launch - and this could be behind NVidia's lack of interest - but I doubt it.



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re:And of course there are other costs like marketing, R&D, etc that also increase the final price.

For instance, WiiU's BOM was rumored to be $180, the console is sold for $300 and Nintendo loses money on each one.

I understand/agree re the other cost involved- I imagine Sony and MSFT will be selling at a loss too- but regardless of cost for any of the consoles, don t you think the Wii U should be at least $100 cheaper than the msft/sony consoles to be competitive from a valuation standpoint?



kowenicki said:

I hadnt seen this before.  This is a mock up from Stuff magazine.

Surely not....

Saw this a couple weeks ago.  As someone else told me, it looks like a really old laptop.



Zero chance.

 Keep in mind this is the same guy that predicted the Wii U would launch at $250, when it's infact $350 for the not shit model.

http://www.forgetthebox.net/rumor-wii-u-price/

Not to mention the Wii U parts were estimated at launch to be around $180, $100 less than what Pachter is claiming for PS4, and even that was ultimately sold for a loss until at LEAST 2 games were sold a long with it. We know that Sony is similarly looking to take a small loss per unit at launch instead of what they took with the PS3, so launching at the same price tag as the Wii U did with parts going for a $100 more simply doesn't add up. And I'd assume the production and assembly is even more expensive for the PS4 and One than it was for Wii U due to size and electricity.



Metroid33slayer said:
What is BOM? why does everyone have to be so lazy and abbreviate everything? half the time i have no idea what anyone is talking about it is like a foreign language.


Bill Of Materials



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They must consider that aside from the parts there is also the salarys of the people involved in making them, the shipping to stores and stores take from the price so I expect at least 50 more for each



Dunban67 said:
re:And of course there are other costs like marketing, R&D, etc that also increase the final price.

For instance, WiiU's BOM was rumored to be $180, the console is sold for $300 and Nintendo loses money on each one.

I understand/agree re the other cost involved- I imagine Sony and MSFT will be selling at a loss too- but regardless of cost for any of the consoles, don t you think the Wii U should be at least $100 cheaper than the msft/sony consoles to be competitive from a valuation standpoint?

Yes, if both the PS4/Xbone are launched at $400, then the WiiU needs to be $300 to be competitive. And I mean the Premium model.

TheLastStarFighter said:

Of course AMD could be taking big losses at launch - and this could be behind NVidia's lack of interest - but I doubt it.

AMD won't take any losses for other Co. They will make the APUs and they will sell them for a profit. If Sony and MSoft are ready to sell their machines with a loss it's their problem, not AMD's one.



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kowenicki said:

I hadnt seen this before.  This is a mock up from Stuff magazine.

Surely not....


Please God no! That thing is horrible!



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Lmfao, sounds like typical Patcher yet again. There's no way, knowing what we do about the hardware and contents in each box, that either one is going to retail for less than $400. No chance at all.



Personally, I don't see either console selling for less than $450 for the "cheap" model. I expect Microsoft to offer a 250GB drive and Kinect included. I expect Sony to also offer a 250 GB drive.

MS will most likely have a premium model with a larger hard (500GB?) drive (specifically since they said the built-in drive is not replaceable). I expect this unit to sell for $500 or $550.

Sony will most likely offer a premium model with a larger hard drive (500GB?) and the new PSEye. I expect this unit to sell for $550.