News Article

Pachter Reckons That the PS4's Bill of Materials Is Around $275

Posted by Sammy Barker

Positive predictions

Industry analyst Michael Pachter believes that the total bill of materials required to construct the PlayStation 4 will cost Sony around $275 – some $50 less than the components needed to build the Xbox One. The divisive Wedbush Securities employee revealed the tidbit in a note released to investors ahead of E3, justifying his recent $349 price tag prediction for the machine.

“For the PS4, we remain confident that the new console will have a lower initial MSRP than the PS3, which had a lofty starting price of $599 that we believe negatively impacted its long-term popularity,” he wrote. “We expect the PS4 to debut at $349, as our estimate of the bill of materials is $275.”

Pachter added that the Xbox One will likely cost $399, as this is the same price tag that the firm attached to the Xbox 360 in 2005. “Our estimate of the bill of materials for the Xbox One – based upon speculation regarding many of the specifications – is around $325, suggesting that Microsoft could make a modest profit at the $399 price point,” he continued.

It’s important to note that these are purely speculative numbers, but could prove extremely positive if they turn out to be true. While the PS4 does have some more advanced components under the hood than the Xbox One, it’s worth remembering that the bundled Kinect camera will cost Microsoft a significant chunk of change to produce. That could end up being the key differentiator.

Pachter continued that the Redmond-based firm may offset the pricing discrepancy by offering a subscription tier – something that Sony could copy, but has been hesitant to adopt in the past. We still reckon that $349 seems too cheap for the console, but it would be absolutely huge if Sony could hit that price point. We’re keeping everything crossed. Yes, even that.


User Comments (26)



Epic said:

I call lie its going to be bundled with PS Eye+the new technology in the controller+huge hardrive+Not going to sell at loss makes it inevitable to break the 398 barrier.



rjejr said:

So did Pachter include the Eye or not?

Seems like Sony may a big deal out of the new Eye and the glowing DS4s but now maybe the Eye won't be in there? That's a slight win for MS if Sony drops the Eye b/c even if the X1 is more expensive MS can say the Kinect will get better support due to being bundled.

This needs to be cleared up one way or the other. Though even w/o the Eye I don't see $349, that's the WiiU price w/o blu-ray or a HDD and PS3 hardware. $399 will still seem cheap compared to the PS3 $599.



get2sammyb said:

@rjejr Pachter isn't clear about the Eye. I personally think it will be bundled. I have to imagine it will be pretty cheap to produce — especially compared to the new Kinect which I've just read has a fan on it (!!!).

Having said that, I think it will be $399 (if not more). But like you say, that will still seem cheap compared to $599.



InsertNameHere said:

A $349 price point would cause widespread cause as hundreds of thousands of people flood stores in an attempt to get their hands on a PS4. Aisles will be littered with the blood and limbs of the weak, while the alphas sit atop their PS4 thrones, looking down on those who thought to oppose them. In an attempt to restore order Sony would send in Helghan troops - with the PS4 hoarders ever increasing numbers, the Helghans would eventually fall as well.

Finally, having been backed into a corner, Sony would have no choice but to unleash Kratos. His fury and strength would allow him to easily crush any and all resistance - finally putting an end to a long and senseless struggle. The war finally over, the world could then be rebuilt, and unified into one nation under Lord Hirai's rule.

@Sanquine I don't see either of the 2 dying anytime soon. Sure they're doing pretty bad right now, but I have faith in them.



Jaz007 said:

If this is true, it would be incredible. I'm are he's done his research on the matter too so I'm not going to just write this off. Even if he didn't include the eye it wouldn't change much as they would still be able to afford $350 as the price. It being $50 cheaper would be great especially combined with the free online. I'm sure some features will cost money, but the basic should be few while Xbox One's online will probably cost money no matter how basic.



MorriganIsHot said:

Own a Wii, 360 and two PS3s. This time it will be PS4 & Wii U for me, not buying an Xbox One since it has used games fee, pay to play online again & always on crap. M$ shot themselves on both legs with a shotgun.



hYdeks said:

Pachters a moron, stop listening to him. Nintendo will do fine, Xbox brand will probably die this generation. Thinking the PS4 will only cost $349 is a joke for the specs it has, the eye will more than likely come with it, also. There, I said what I had to, go ahead and b***h about what I said, you know you want too



Jaz007 said:

@DeHorror1975 It says it's becoming Asda's fasted pre-ordered console, I guess they are some Bristish store chain. They don't look like the type of place to get too many pre-orders for consoles, at least certainly not for the PS360/Wii gen, so it doens't look to immpressivea feat. Can any Brits help us out here and tell is more about Asda?



sammy760 said:

@Jaz007 Asda is a supermarket for food and just about everything. they sell things like technology,clothes mostly everything you would need



Jaz007 said:

@sammy760 How big are they? How imppresive is the feat of Xbox one becoming the fasted pre-ordered console there?



sammy760 said:

@Jaz007 it is a fairly big supermarket as there across the nation but console sales don't do well as they usually have them at full price constantly with barely any sales



DeHorror1975 said:

It just defies all logic to me that the xbox one could be doing so well considering they have not clarified any major issues, and we haven't seen E3 yet. Sony has done almost everything right or better this gen, so if the xbox still sells better than the PS4 then there is nothing Sony could ever do to pull out ahead. It also worries me that this is in the U.K. So what does that bode for the states? Its just almost impossible to believe and I have to believe that Microsoft has done something here and it wouldn't be too far fetched to say that considering the fake applause at the Xbox One reveal. Hearing the Xbox break records after all the bad ideas that they support is just totally discouraging and I fear for the future of gaming.

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