PlayStation 4 and Xbox 720 Cost $400/€299, Analyst Says

Next-generation consoles will be cheaper due to PC components

The next-generation consoles, aka the so-called PlayStation 4 and Xbox 720, will both cost around $400 (approximately €299), at least according to an analyst who cites sources he met during the CES 2013 expo last week.

Even if both Sony and Microsoft are firmly supporting their current PlayStation 3 and Xbox 360 consoles, reports deem the announcement of their successors this year as a certainty.

Now, after hearing plenty of rumors about the so-called PlayStation 4 and Xbox 720 platforms, Baird Equity Research analyst Colin Sebastian has just posted a new note in which he emphasizes that the two devices will be showcased at E3 2013.

"Given the fragile state of the console game market, we expect the E3 trade show in June will take on added significance, most likely providing the industry with the first public opportunity to examine next-generation hardware," Sebastian said, via CVG.

According to the analyst, the two consoles will be built using standard components found in PCs nowadays, as they're cheaper and easier to work with, from a development standpoint.

"Our checks suggest that next-generation console hardware will be largely built from 'off the shelf' high-end PC components, along with hybrid physical/digital distribution models, enhanced voice controls and motion sensing (Kinect integration with every Xbox), and broad multi-media capabilities," he added.

This special production process allows for different advantages, including a lower price, which Sebastian speculates is around $400/€299.

"Moreover, a PC-based architecture (Intel chips in the case of Xbox) should have a number of advantages over custom-developed silicon: for one, the learning curve for software developers will be shorter than completely new technology. Second, the cost of production and retail price points should be lower than prior console launches."

"Third, it will be easier to build online services around PC chip architecture, including flexible business models (free-to-play, subscriptions) and multi-media (over the top) content offerings."

As of yet, however, both Microsoft and Sony aren't commenting on rumors about new consoles, although they've begun to tease special announcements.

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