Microsoft To Go All In Against Sony; Xbox Series X Might Crush PS5 on Price Even Though It Could Take A Big Loss

Karamchand Rameshwar - May 13, 2020


Microsoft To Go All In Against Sony; Xbox Series X Might Crush PS5 on Price Even Though It Could Take A Big Loss

If the PlayStation 5 will cost $500 (Rs. 37,500) as rumored, Microsoft is willing to sell Xbox Series X for just $400 (Rs. 30,000) to attract more users.

Microsoft not only embraced the ambition to beat the PlayStation 5 with its Xbox Series X in terms of hardware configuration but also decided to go all in against its rivals by offering a cheaper price. According to a recent analysis, Microsoft is willing to take a big loss to make its next-gen console more affordable, which attracts more customers. This is also seen as a strategy to help them beat Sony's PlayStation 5 in terms of sales and is expected to outstrip rivals by the end of the year (usually the time when electronic goods are selling well around the world).

Xboxplaystation 0
Xbox Series X vs Playstation 5

Specifically, in the latest broadcast on Geoff Keighley's Bonus Round, analyst Michael Pachter from Wedbush Securities said: It is likely that the list price of Xbox Series X will be $ 400, lower than it is worth. compared to PlayStation 5 - 500 USD. "From what I've seen, Sony's gonna have to charge $500 for the PS5," Michael said. "Microsoft has a big balance sheet. If they want to cut the price by $100... they will. I think they're waiting to have Sony blink first, and then they'll reveal the price and release date."

Michael concludes: "Very likely sometime in November, very likely $400, and fans are going to get a lot from their $400."

Microsoft Xbox Series X Vs Sony Ps5
No matter how much the PS5 costs, the Xbox Series X will certainly be a lot cheaper to attract users.

For those who are interested in the console market in particular and gaming in general, this context seems quite familiar as if it had once happened. In fact, this can be seen as retaliation from Microsoft, when they were once victims of Sony itself with this sophisticated trick. At the E3 2013 event, Microsoft revealed that its Xbox One model will cost quite high, $500, partly because of the Kinect camera. Shortly after that, Sony announced that the PS4 cost $400 - an important factor that helped them beat their rivals in terms of product sales.

Peter Moore, a long-time gaming expert who once led Microsoft's Xbox team through projects like Xbox 360, agrees with Michael's comments. He said: "Microsoft right now, the stock price, the market cap... everything's flying for them. Does Satya [Nadella] say, 'this is the opportunity right now, as we did with Xbox 360, lets get in, let's price it right, let's get the right content there.”

Currently, both Sony and Microsoft are hiding information on the prices for their new generation of consoles. Sony is expected to hold another official PS5 launch event on June 2, while Microsoft has announced a monthly Xbox 20/20 livestream, planning to provide more information about the new model. In just a few months, PS5 and Xbox Series X will be available worldwide. Therefore, this price war between the two rivals will surely end soon. And wait and see, whether Microsoft is willing to take a loss to beat Sony in terms of sales just like what experts say.

>>> This Gaming PC Comes With A PS 4 Or Xbox One S Built In, Your Choice

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