Colin Sebastian of Baird Equity Research has said that the new generation consoles will most likely come in around the $400 price range. This number isn't just a random number he came up with, but is based off-the-record meetings with a "number of companies" at CES 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 wrote in his notes.

"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.

"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. For Microsoft, this design will also allow for more integration with Windows 8 and Windows Mobile devices."

Sebastian has said that the Xbox 720 is expected to release in November, while Sony has had some "early production issues" and the PS4 could be released after the Xbox 720.

Posted: Jan 15, 2013 12:48 pm
Related Forum: PlayStation Forum