Activision expects a fall in prices of PS4 and XboxOne in three months

Activision has filed its quarterly report for the company in which the editor promises big profits for the coming months. The report detailed numerous points and has drawn attention one where the CEO Bobby Kotick predicts a price reduction on new generation consoles PS4 and XboxOne.

[lnvisibleMan]

It true that Economies of scale equates to lower price production, there still is no guarantee that prices will drop anytime soon. If that were the case MW2 would have been cheaper at launch than COD 4 due to increase demand.

[come_bom]

"Activision expects a fall in prices of PS4 and XboxOne in three months"

I hope so, because i have no intention in buying a next gen console in the next 3 months... but i don't think it will come down in the next 3 months. It will mostly depend on X1 sales, and if Microsoft detects that they are losing market share, they will be forced to lower the X1's price.

In the USA the X1 has good preorder numbers, but I suspect the X1 sales in Europe is not going to be very good. Microsoft will probably release a cheaper Kinectless X1 in 2014 to compete with the PS4.

[minimur12]

that's a given, I got my ps3 6 months after launch, and got it for £300 with 2 games (uncharted and heavenly sword) and 2 controllers

god knows how much I saved, but it's a decent amount thats for sure

[Gaming101]

Wow, so much for Kotick's Economics knowledge... how someone that stupid is CEO of Activision is beyond me. His logic is completely ass backwards. When demand goes up, so do prices. Prices only come down when demand plummets. It's called supply and demand, economics 101 people.

[UltimateMaster]

Keep dreaming.
There's isn't one coming for either console next year.

[kreate]

I guess Bobby borrowed that crystal ball Michael pachter was using.

[jimmywolf]

agree, an despite anyone growing optimism of it happening, it won't. how long did it take for a vita memory price card drop? even after they cut the price of the vita. what will happen is new bundle first, an price drop next year closer too holidays.

[raWfodog]

I would love it if the PS4 price dropped after three months because I don't plan on picking one up until about March or so but I highly doubt that would happen.

Demand would have to drop significantly in order to trigger talk about a possible price drop for any of the consoles. I honestly don't see that happening anytime before six months, at least.

[rainslacker]

We won't see a price drop until at least E3 next year, and that's in June, 8 months away from launch. Even then, I doubt we'll see a price drop, maybe just an upgrade to hard drive to make it a better value. Either that or some bundles will be announced. That's what they did with the PS3 with the $499 models, they just discontinued the $599 models, so no real price drop. The PS4 is in a position of not really having to drop the price right now, as the Wii U isn't a direct competitor to many, and the X1 is already more costly so it's drop in price would only be about $100 at most.

X1 will likely be the same, although a Kinectless SKU may make an appearance at E3 if sales are well below expectations.

I'm sure Activision wants a price drop to help along next gen adoption so they can drop this gen completely and save money, but Sony and MS don't have to bow to them in that regard.

[extermin8or]

I cant see it myself.... not based off oreorder demand-sometimes I see this guys exoectation for the undustry every year or so we get one such article and ibjust think "how the hell were you ceo.... being so out ofbtouch with it all as he clearly is." God, I remember when he thought thw ubdustry would be selling us the game the at an extra cost the cutscenes.....

[aviator189]

they're being too optimistic.
Even for the $500 xbox one, that's way too early.

[ravinash]

The only way I see that happening is MS making a cut because they are loosing market share.

[Summons75]

I have to agree with you there. Three months is way too early, maybe in like 7/8 months when E3 is rolling around and the install base on the next gen systems is lowish then we may see some rumors and probably nothing still.

[DeadlyFire]

Indeed. Now maybe Call of Duty ghosts dropping price in 3 months sounds more legit.

Console won't drop for 2 years when a smaller chipset becomes available to Sony/Microsoft to reduce the cost of the console.

Some independent retailers on the other hand could scale prices up and down as they see fit. I am doubting that console sales will be as slow as Activision believes.

[rainslacker]

We'll likely see some changes to the available SKU's at the same price, either through bundles or upgraded components, to make it a better value, but highly doubtful they'll be a straight out price drop on the current SKU's even by the end of next year.

Also, I'd imagine we'll see price drops on COD by the end of November if we go by history.

[thehitman]

Prices dont drop until year 2 and even then they usually are not real price drops but just new SKU's where they probably alter the contents to give you that price drop. Most times they are taking some of the original stuff away which is why I like to get the launch versions since they are usually the best versions within the first 4 years. The only pre-mature drop I see is a Kinectless SKU for 349.99 the earliest holiday 2014. Any sooner would be how bad MS is looking market share to the ps4.

[triforce79]

They are saying this because of the power to price value.....

[thehitman]

The price is much lower than what both consoles are worth activision are idiots. Sony is already reported to be losing 50-60 dollar per system. Why would they cut it even further in 3 months when the demand is so high. If anything if you study economics you increase the price. Ofc you dont increase the price when it comes to electronics so the only thing they can do is just keep the price where it is until they start turning profit. Anyone who can seriously believe this is true is beyond delusional and Activision should be embarrassed to make such a statement. If I was Sony/MS I wouldve been calling them telling them to keep their predictions on the consoles themselves out of their company reports.

[monkey nuts]

I thought I read that sony breaks even with a ps4 sale if the buyer gets a console with one or two games. Could be wrong.

[Brix90]

@monkeynuts

I think it was PS+ and the games(maybe) Sony would have to sell to break even which isn't bad considering I'm betting who buy it want the free games and to play online.

[DeadlyFire]

It is called a die reduction. Chipsets get smaller and cheaper. They sell them at same price until the sales slump then drop the price to fit it more so. I am betting on a drop every 2 years.

Independent retailers can scale price however they want to compete with each other, but someone has to make a profit to last.

[t0mmyb0y]

Riiight Activision. Go make next years CoD. :)

[parentoftheyear]

Its already done. Their finishing up the dlc for it. LoL

[DeadRabbits]

COD Ghosts will be filling the Used Games aisle for sure!

[mistertwoturbo]

The PS4 isn't going to drop anytime soon, it's already priced pretty low. We "may" see it drop $50 in two years or so.

Now for the X1, they really should consider dropping it to $399 like the PS4 or give what people want, a Kinect-less bundle for $349 or something.

[KyoSiegfried86]

Microsoft could cut the price only if they remove something (for now, at least), for example removing kinect. Cutting the price now without removing Kinect would be a loss of money.

However, I don't think this is gonna happen. Microsoft prefers to add something instead of cutting the price, they started with 1 game, and now 2 games at the same price. They might continue to add something in the package instead of reducing the price.

[mistertwoturbo]

That's true too, they will probably do bundles to "offset" the price of the console.

Which isn't too bad. If they do something like a Forza 5 + Dead Rising 3 bundle. I'll probably actually buy one.

In reality it's probably going to be some Kinect game nobody really wants and Sonic Adventure or something lol

[toddybad]

I'm getting a ps4 but will get an xb1 in a year. I can't work out why anybody would want a kinectless xb1. It's possibilities, use of choice and gesture etc are groundbreaking and make the machine. Without it there's no real reason to buy xb1. It's just Sony fanboys moaning.

[mistertwoturbo]

Well there's going to be people (like me) who really don't care about Kinect.

I actually have Kinect and guess what 3 games I have on it. Kinect Adventures, Dance Central 2 and 3. That's it.

This time my wife isn't going to convince me to get the Kinect that is going to collect dust.

So yes, people out there would love to buy a XB1 without Kinect. Heck, give me a $400 Forza 5 Kinect-less bundle and I'll pre-order it right away.

[yellowgerbil]

NEver gunna happen.
it will be 1.5 to 2 years before a price drop. These companies both need to start making a PROFIT on hardware to get their investors off their backs. So cost may go down quickly but price will stay up.

[ShinnokDrako]

If they sell like bread, i don't see the point. We'll see how they sell and then we could be the analysts of the situation =P
BUT... if one of the 2 sells less or a lot less, maybe... i'm already imagining all those whining ppl with those stupid sentences like "i paid it xxxx!! Damn XXXX!! I want a discount, or a game, or whatever!!", like if it's MS or Sony fault if they couldn't wait.

[KingDadXVI]

This guy is CEO of Activision and he thinks this? What do they use there for forecasting techniques, a voodoo witch doctor and entrails.

That statement flies in the face of basic economics. Sure production costs will start to drop but one would assume that MS and Sony have signed contracts with the companies producing these machines that are longer than a few months so they will have to pay what the contracts state. Even if they do have the option to get the consoles from said companies for a reduced cost why would you lower your price if you are selling them as fast as you can make them. That would just decrease your profit.

I would expect MS to lower their price point first because the Xbox One is at a higher price and also they are selling at a slight profit per unit sold whereas Sony is reportedly selling at a slight loss.

You may see a price drop from MS in the summer of 2014 and maybe one from Sony come 2014 holiday season but not before unless either company sees dismal sales which does not appear to be happening.

Both companies appear to be selling record numbers in pre-orders and if that continues there is no logical reason to lower prices.

[CocoWolfie]

that would actually be quite smart, especially with the next wave of games coming in like infamous. a price cut with give the next wave of gamers that nudge :)

[LAWSON72]

The price to own both is pretty damn high 110$ a year