An Xbox Scorpio Price Tag Above $399 Is “Suicide” For Microsoft Says Analyst

Aernout
Posted Nov 4, 2016
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A lucrative Xbox Scorpio price tag will be vital for the console’s success, and Microsoft would commit suicide if its pricing exceeds $399.

At least that’s what Wedbush analyst, Michael Pachter, recently told GamingBolt when talking about the Scorpio’s pricing ahead of Sony’s PS4 Pro release next week.

Sony’s $399 PS4 Pro price tag is rather appealing for those looking for an high-end console this Holiday. Sony’s machine is capable of rendering in 4K and features some amazing visual enhancements for games that support it. On top of that – it releases next week, while Microsoft’s Xbox Scorpio won’t release until next year.

Microsoft has promised “true” native 4K gaming without compromises with its Scorpio project, but at what price exactly? Although Microsoft hasn’t revealed any details about the console’s price, Xbox head, Phil Spencer, has stated that the Scorpio will be released as a “premium” product and that people shouldn’t be worried about its pricing.

According to Michael Pachter, a price tag above $399 would be suicide for Microsoft due to the pricing of Sony’s PS4 Pro.

“Well, I think Microsoft would commit suicide if it was more than $399. And the problem they will face is if they launched it at $399, the PS4 Pro might discount to $349 in the same week. So I’d be really surprised if the Scorpio was more than $399.”

Pachter added that he hopes that Microsoft won’t make the same mistake as they made with the Xbox One and its mandatory Kinect.

“I was really surprised when the Xbox One launched at $499 with Kinect, and it took them a while to unbundle Kinect and drop the price. So Microsoft has not executed well this cycle as far as pricing goes. Just as Sony executed poorly with the PS3’s pricing. So Microsoft’s playing catchup, and I’m hopeful that they don’t make the same mistake with Scorpio that they did with the Xbox One.”

The Xbox Scorpio is slated for a release somewhere next year. Meanwhile, Sony’s PS4 Pro releases next week on November 10 for $399.

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