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.

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lnvisibleMan1661d ago

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_bom1661d ago (Edited 1661d ago )

"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.

minimur121661d ago

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

Gaming1011661d ago

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.

UltimateMaster1661d ago

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

kreate1660d ago

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

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jimmywolf1661d ago

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.

raWfodog1661d ago

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.

rainslacker1661d ago (Edited 1661d ago )

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.

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extermin8or1661d ago (Edited 1661d ago )

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.....

aviator1891661d ago

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

ravinash1661d ago

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

Summons751661d ago

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.

DeadlyFire1661d ago

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.

rainslacker1661d ago

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.

thehitman1661d ago

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.

triforce791661d ago

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

thehitman1661d ago

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 nuts1661d ago

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.

Brix901661d ago


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.

DeadlyFire1661d ago (Edited 1661d ago )

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.

t0mmyb0y1661d ago

Riiight Activision. Go make next years CoD. :)

parentoftheyear1661d ago

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

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