PS5 in trouble? Xbox Series X lying in wait to skewer PlayStation 5 on price

(Image credit: Microsoft | ConceptCreator)

last updated 18 June 2020

Will the PS5's big reveal take place in June? That's the hope from the gaming community, as the latest leaks all point towards an early summer reveal. We're expecting a reveal of the main console obviously, in addition to a new look at all the launch games like Godfall, but a very important tidbit we're still waiting for is how much the console will cost.

The Xbox Series X, despite a series of high-profile unveilings of its console, specs and games, has also refrained from revealing its price tag. However, it seems Microsoft and Sony are playing a sophisticated game of chicken, as Microsoft is waiting to see if it can undercut the PS5 and gain an early lead.

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An interview with Wedbush Securities analyst Michael Pachter and Peter Moore, a former Ea and Microsoft exec, reveals Microsoft could be waiting for Sony to make the first move. The industry analyst, published via news outlet vg247, believes he's got Microsoft's strategy on lock.

“From what I’ve seen, Sony’s gonna have to charge $500 for the PS5 and Microsoft has a big balance sheet,” said Pachter, referring to the Sony console's expensive innards.

“If [Microsoft] wanna cut the price by $100 – just price below and subsidise the first 10 million [units] – they will. So, I think that they’re waiting to have Sony blink first and then they’ll reveal the price. Very likely $400.”

Will the internal component cost of Xbox Series X and PS5 make the difference between who wins and loses?

Pachter claims Microsoft will be able to absorb losses better than Sony, allowing it to undercut the PS5 by up to $100. The PS4 sold 106 million units worldwide since its debut in 2013, becoming one of the most widely-sold consoles ever.

Although Xbox One (and its offshoots, the Xbox One S and Xbox One X) was a highly successful console in its own right, it couldn't quite match the PS4 for ubiquity. If Pachter is correct, Microsoft is looking to turn the tables this time around.

It looks like it's off to the right start. While Sony has remained tight-lipped and offered very little information on the PS5, apart from a tech-heavy specifications presentation with no footage, Microsoft has been methodical and very transparent. Dropping reveals several months apart, the Xbox Series X is dominating the next-gen conversation.

However, Microsoft did come under fire during its recent in-engine footage showcase for third-party games. Boasting gameplay reveals for Assassin's Creed: Valhalla and other titles, very little gameplay was actually shown: the Valhalla gameplay trailer has more dislikes on YouTube than it does likes, due to the misleading title.

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Matt Evans now works for T3.com sister brand TechRadar, covering all things relating to fitness and wellness. He came to T3.com as staff writer before moving on, and was previously on Men's Health, and slightly counterintuitively, a website devoted to the consumption of Scotch whiskey. In his free time, he could often be found with his nose in a book until he discovered the Kindle.