Via Fortune's article
'Console wars: Predicting this holiday season's gaming winner'
Michael Pachter, a long-time game industry pundit and senior analyst at Wedbush Securities, believes the PlayStation 4’s price cut for the holidays likely won’t “make much difference at all,” because it will match the Xbox One’s price tag. He did, however, suggest that if Microsoft wants to sell more consoles, a price cut would be in order.
“Microsoft should cut price only if it cares about how many consoles it sells,” he says.
For its part, Microsoft has signaled that it will not cut the Xbox One’s price. It’s a move that has surprised some industry analysts who thought the company would want to maintain a pricing lead. However, Pachter argues Microsoft is making a smart economic move.
“First-party bundles (games developed by the console maker) cost around $2 and have a perceived value of $50, so they make a ton of sense,” he says. “Third-party bundles (games developed by another developer) 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.”
Microsoft may also have one other advantage: the company’s in-house development studio 343 Industries will launch Halo 5: Guardians next week and sell a new bundle with it.
So, which company will ultimately win this holiday season? Of course, both Sony and Microsoft argue they will win. Pachter, though, says the crown will likely go to Sony. The victory just won’t come by way of a price cut.
“The PlayStation 4 will outsell the Xbox One globally this holiday, and they will be pretty close in the U.S.,” Pachter argues. “Sony probably wins, however, as it has a great brand and is doing a great job marketing.”
Still, there’s one other company to consider: Nintendo. While the company’s Wii U has been largely forgotten this console cycle it’s still trying, and hoping to make a splash this holiday season. The trouble, however, is that its chances of doing so are slim, if not non-existent.
“Nintendo has no chance to be successful in consoles this holiday,” Pachter says.
Read the full article below
http://fortune.com/2015/10/25/holiday-season-gaming-winner/
