Talking Xbox One, PS4 and next-gen gaming with Michael Pachter

GameZone writes, 'It was just one week ago that the world was introduced to Microsoft's Xbox One. The unveil brought excitement, frustration and a significant amount of confusion, but it has officially ushered us into the next generation of gaming Today, we are excited to be joined, once again, by Michael Pachter, Wedbush Securities' Managing Director who has been analyzing the gaming industry for years now. We're going to ask Michael several questions regarding the Xbox One, PlayStation 4 and the industry itself, so without further rambling, here's our exclusive interview with Michael Pachter.'

[Relientk77]

Near the end of the interview:

[GZ]: What will we be paying at launch for the Xbox One?

[Pachter]: $399

[GZ]: …And for the PlayStation 4?

[Pachter]: $349

that would be great

[LOGICWINS]

I was initially concerned that the camera wouldn't be included with every PS4, but now that we know that MS will include Kinect 2 with every Xbox One, Sony will follow suit for sure.

$399 for these consoles including the camera is VERY fair.

[Relientk77]

Bundling the camera with the PS4 is definitely a good move which Sony should do, especially if their direct competition is doing so.

[fermcr]

I'm ugly. Don't need a camera. I want a cheaper console with NO dam camera.

300€... and I buy.

[a_bro]

even if you dont need the camera, its good that it comes with it. brings more parity for games.

[bicfitness]

I got laughed out of the park on N4G for making price claims of $349 months ago, but it Sony is really out for blood they will do it. As far as the camera, its not intrinsic to the PS4 experience, so I see them keeping it out of the "basic" bundle, just to keep costs down. But then we'd be looking at a camera+500 GB HDD "plus" model (or thereabouts) for $449. That's my guess anyhow. I think like with Sony betting on RAM manufacturing working out in their favor, MS bet on having cable companies on board to subsidize, but that didn't work out for them. So they got cockblocked on both price and tech.

If they beat MS on tech AND price, this gen is Sony's for sure. One of the main advantages to MS last gen was the 1 year head start and the consistent price discrepancy. Brand loyalty isn't what enthusiasts personally experience. The majority of consumers will buy whatever costs the least.

[RiPPn]

No way these consoles sell that low. I'm betting $449-$499 and only 1 sku for both. (already confirmed for xbox one)

[LOGICWINS]

The competition is too fierce this time around. Not offering a $399 SKU at launch would be foolish this gen.

[seanpitt23]

People are in dream world expecting a $399 price tag for ps4 my Sony phone cost $450 lol the ps4 8g of GDDR 5 is $120 alone I know Sony will get a discount on buying bulk but Sony has always been about quality and that comes at a price.

Iam pretty sure it will sell around $499 it makes sense to me $100 cheaper than ps3 was at launch because they haven't invested 100s of millions in the cell technology.

[forcefullpower]

I still thinks its funny that if they sell the ps4 for £300 ish. That it will come with 8gb gddr5 yet a new titan costs £800 any only comes with 6 GB. Who is the one being screwed the pcgamer or the console!!!

[koolaid251]

the 8gb of ram in the ps4 is unified and the pc version is dedicated video ram plus you have the 8 or 16gb of ddr3 also in a computer.

[NextGen24Gamer]

Microsoft did two smart things with this next generation which is getting a lot of bad press from Sony Fans.

1. They made Kinect 2 part of every console! By doing this, developers now can add features to their games that can only be found on Xbox. Developers now know that every console has it and can add voice, hand gestures, controller tracking, and motion to their core games! No way you can be a next gen console and not add features to every system. If Sony doesn't do this, game developers won't add those features...making sony's games look and play gimped compared to the next gen xbox one!

2. Requiring an internet connection is also a good move by Microsoft. What this does is let every single developer know that they can use the cloud for what ever they choose when making their game for the next gen xbox...whether it be for AI computations, or multiplayer aspects....Great move because now developers have more at their disposal and they know that 100% of the xbox one users are connected...It doesn't mean you have xbox live....it just means that you are connected! Big difference and it will give Microsoft the advantage for the same reason that having Kinnect 2 included does. Developers will take advantage of this and make games that use the cloud. Sure Sony could copy, but without requiring some kind of internet connection, developers will never know how many gamers are using it and won't invest in the cloud for games without knowing the base has internet!

I've been gaming for 30 years and every next generation the future is always faced with resistance! Gamers will always say..."we don't need that" "I like the good ole days of gaming"...LOL...Imagine if rumble was never added to controllers...or two thumb sticks? I am old enough to remember the resistance that came with those two innovations. And now, it's just part of the gaming experience! Now it's a staple in gaming consoles. 5 years from now everyone will be connected via internet and people won't be able to play without HD Rumble...And what the Kinect 2 does will be expected in every console!

For me, an old timer, it's just the evolution of gaming and I'm excited to jump in later this year!

Also, just because their are 50 million xbox live Gold subscribers and 27 million that don't have xbox live Gold, doesn't mean that the 27 million don't have internet! LOL...No one has made that point so I thought I would. I have friends who own an xbox 360 and they have internet at home but they don't play games online, thus they don't have xbox live Gold! I'm pretty sure that, that is the case for most if not all of the 27 million who don't have xbox live accounts. Requiring an internet connection won't hamper sales one bit! The only people it pisses off is the guys who copy games and play illegal copied games on their consoles or mod consoles...LOL....

[JoGam]

If anything they are getting bad press from gamers. Some may be fanboys but majority are gamers.

[KrisButtar]

I agree with a lot you are saying but my only problem with your comment is you think developers will use these feature. Look at what these delevlopers do now.

make a game, port it to other systems, they are lazy. look at WiiU ports even with a gamepad

I think of 1st party developers are going to use these extras unless these extras work for everyone because they don't want to be doing all this extra coding

[NextGen24Gamer]

I feel what your saying. Microsoft is real good for throwing millions at companies to add features or use their console as the primary system to develop for. Look at Call of Duty Ghosts...MS does this with many developers and it definitely gives the Xbox One an advantage to fans of those blockbuster games!

But I agree that for sure 1st party devs will take advantage of knowing that everyone has Kinnect and everyone has an internet connection!

[KrisButtar]

@elite24gamer

I honeslty think that those millions would be wasted getting 3rd parties to add kinect features. Putting systems aside and just talking about fans of 3rd party games. COD,AC,GTA,Elder Scolls etc. For example, do you think anyone really bought Skyrim on the 360 for the added kinect features? Added content yes, even if timed content but not montion/voice controls. Look at it this way the same system releases 2 versions of AC, 1 with motion/voice and 1 without for the same price. Even with the extra "value" the motion/voice version would have, it would still sell a lot less. Do you think those couple of sales would be worth millions?

Edit: spelling

[dendenmooshi]

That #1 is a good point. However, I believe your point is assuming that people don't prefer motion tracking because it's optional. Personally, I think people genuinely don't prefer it.

It's interesting though. I believe X1 is trying to capture the Wii audience that Wii U has failed to retain. Even if the dance/exercise games may have been a fad, I'm sure Microsoft will throw much money to advertise it back into a reality. Will it work??

[NextGen24Gamer]

Kinect 2 is not just motion tracking! It's an entire slew of things that can be added to core games to enhance the experience! Developers know that having a controller in your hand is part of the core experience...But with Kinect 2 they can augment gameplay with voice commands, simply swiping your hand, by thrusting your controller forward, up, down, etc...Not to take the place of the controller, but to augment the game experience!

When you are playing an RPG and you can simply say switch to sword & shield, instead of actually stopping the game play and going into the menus...that enhances the experience. It makes it instant and it's actually fun!

Kinect motion games defiantly aren't for everyone! My kids enjoy it more than I do as a 40yr old gamer! I think we will see Kinect being used with Hardcore games but in a slick creative way that doesn't' get in the way of the core experience, but add to it!

[rainslacker]

#1. I kind of agree here. I don't think most people are hating on the idea of having the motion controls and what it can do, although some still don't want it. I think they're hating on the fact that it's not optional. I don't play into the conspiracy theories, but privacy is an issue. Other than that I won't really go on.

#2. They could have done those things anyways, and still made it optional. Let the people that can/want to take advantage of it do so, and the ones that can't/don't want to not have to. If they can prove it's worthwhile without forcing it on people, then adoption would be quicker. Otherwise people may not even try it, simply because they don't like to not have options. The bigger issue here is the authentication of games every 24 hours, and the fact that not everyone can do that.

@edonus
Motion controls have been around for 7 years on consoles, they've had their time, but the technology was sub-par. It's also a change in how people play games, and offers a form of game play that just isn't how many people play games. If people don't want to move around while playing, no amount of tech upgrades is going to change that.

Otherwise, yes, including them into consoles will help it's adoption rate, and hopefully bring a bit more stability and performance to the software being implemented for it. But it won't suddenly make everyone want to play with motion controls.

[KrisButtar]

Both companies have/are doing things I dislike about their systems E3 is going to decide which I purchase and which one I get a couple years down the road.

Those are some nice prices

[NextGen24Gamer]

I have a feeling that both consoles will cost exactly the same! Neither company wants to be seen as the cheaper option! It will come down to which console has more bang for your buck for many holiday shoppers! Parents will look at the specs and the price and the features and make a consumer decision. All the major 3rd party games that gamers love will be on both consoles...First party games only matter to the very hardcore base for each console!

3rd party games sell much more than 1st party games and have broader appeal! The fact that the Xbox One will get tons of exclusive content from 3rd party devs could be a deal breaker for some!

[GusBricker]

I would be thrilled with those prices.

[golding89]

I hope 399 for both ps4/one

[swishersweets20031]

heck ya me too :p

[kingmushroom]

I heard it might be $400-$450 for the PS4

[GreenRanger]

I hope Sony leave out the camera to keep the price down.

[Bellcross]

Damn it Pachter, Now the PS4 price will be $500 he's always wrong.

[bobacdigital]

It doesnt make sense that the X1/Ps4 are going to sell for 399/349.... Unless the X1 is charging more for Live to offset selling their hardware for that much.

The Wii U released at 300 and 350 ... Are you telling me with better tech both the X1 and PS4 are going to sell for the same price / 50 more than the Wii U Deluxe?????

I am fairly certain you will have to add 100 bux to each of those prices to accurately represent how much they will be charging... Most people going into the store will see a Wii U for 350 and then a PS4/X1 for 450 and think for 100 more I can get better graphics.

[MasterCornholio]

"The Wii U released at 300 and 350 ... Are you telling me with better tech both the X1 and PS4 are going to sell for the same price / 50 more than the Wii U Deluxe????? "

Well the Wii U does have an expensive tablet controller and depending on whether Microsoft or Sony want to profit from the hardware they can release it at 399€ if they wish to.

[bobacdigital]

The X1 is going to come with the new more advanced Kinect bundled with each X1 console ... The current Kinect is selling for 100 bux right now and was about 150 or so on release (which should wash against the price of the tablet)... The xbox CPU by the numbers is going to be faster with more cores, it has 4 times the ram, and also has a 500 gig harddrive vs the 32 gig flash drive the Wii U has....

The PS4 was shown with a new and improved controller on top of a new playstation eye sensor.. I am going to assume since the dual shock 4 has the ability to be tracked by the new PlayStation eye it will be included with each console as well... By the numbers the PS4 is going to be more advanced than the Wii U and the X1... taking into consideration the eye sensor will be 100 bux or so (A wash against Wii U tablet)..

I think it would be safe to assume that if the PS4 and X1 sell at 350-400 they will be taking significant losses on each unit..... Nintendo has said that the margin on the Wii U as it is is very low... I believe both Sony and Msft have said they wish to avoid selling hardware at a loss this coming generation...

I still believe that 450 and 500 are going to be target prices for their cheaper SKUs.. If the X1 does sell at 399 or lower you will be required to have a LIVE Account paired with it .. most likely a 2 year plan to help recover money they lose on the hardware. Maybe Sony will do the same thing .. 399 and 2 year commit to psn+

[Zcarnut]

Well the public is used to 2 year contracts with their phones. I can see a similar business model with these consoles working.

[koolaid251]

That playstation 4 controller has so much extra stuff on it with the usb cord I can see it being at the least $80 just for a controller.

[MontyQ]

I heard patcher is ugine levys twin

[TheBrit]

Sony should include a headset with every console more so than a camera.

[Jaqen_Hghar]

A man thought they already confirmed that?

[TheBrit]

Didn't see that they had said that, it would be smart considering most games are played online nowadays

[PigPen]

M. Patcher knows what he is talking about ! Thought I we be reading his rhetoric.

[Skate-AK]

I feel that $350-$399 is the sweet spot that people just can't resist.