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PS5 and Next-Gen Xbox Will Probably Not Cost $500, According To Michael Pachter

PS5 and Next-Gen Xbox Will Probably Not Cost $500, According To Michael Pachter
From N4G - November 7, 2017
ImGumbyDammit1h ago(Edited 1h ago)

You get it. Phew... I thought I was the only one. The same problem is going to arise at $399 price point as happened with the release of this generation. The console will be based on components that are at best middle of the road in power. The PS4 APU will have to be around $130 (like it currently is for the Pro). Exceeding that price drives up the console price. So with $399 you will get an average performing (for that time) GPU and CPU in the APU.

Yes as time goes on the more expensive technology gets moved down the line as new tech replaces it a the top of the tech food chain. And that pushes the others down. The power may increase but the price points really do not vary much from tech generation to generation. So, todays high-end becomes tomorrows mid range. And todays midrange becomes tomorrows low-end. Of course there several in between levels but the idea is the same. Each level moves to lower price point when new tech is introduced

Once again you will get a lower powered CPU and middle of the road GPU. Sure, it will much more powerful than what we have in the base consoles now and excluding the X's GPU optimizations more powerful than that consoles APU for sure. Such changes may seem more powerful to us now. But, it will once again represent weaker middle of the road in components compared to what that line of high end, mid and low-end looks like when the PS5 is released. That $100 added for components is quite a lot. That is an additional 25%. Companies could then spread the wealth or just emphasis a greater powered APU.

For Microsoft, I think going forward with $499 they have already established that willingness to use that as their price (twice) of any console. Perhaps, they will transition the X down to $300 for the next generation. But, $499 in a future Xbox console will allow them to spend more on components (e.g. maybe the a APU could be $200 not $130). Now the question is Sony planning on doing that as well. And would current PS owners be willing to pay that higher starting price for a PS5 to get a device that is filled with more than low-end/middle-of-road tech for the time. Are would PS5 owners willing to just have low-mid-range tech in the next gen that meets that $399 price point.

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