Analyst Claims Microsoft is Waiting to Undercut the PS5 Price

By Alistair Jones on at

Microsoft could be actively waiting for Sony to reveal the price of the PS5 so that it can undercut its competitor with the Xbox Series X. In an interview with Geoff Keighley last week (via VG247), industry analyst Micheal Pachter said that Microsoft could be prepared to take a financial hit if it means its console is cheaper than its competitor.

Pachter notes reports that development Sony's high-tech console is likely to prove pricey, suggesting that "Sony's going to have to charge $500 [ £400] for the PS5." The Xbox Series X is also well-equipped from a hardware perspective, but Pachter suggests that "Microsoft has a big balance sheet," meaning that "if they want to cut the price by $100 - just price below [PS5] and subsidise the first ten million [sales] - they will. So I think that they're waiting to have Sony blink first and then they'll reveal the price."

Microsoft does seem to have the upper hand when it comes to the reveal of its next-gen hardware so far. Last week's Inside Xbox was packed with new releases, and despite the fumble over what exactly defines the term 'gameplay', things seem to have been pretty well-received so far. Sony, on the other hand, seems to be struggling to control the narrative around hardware and price, with its only official word being a fairly dry presentation repurposed from GDC. Until we actually get to see what Sony has in store, it looks like Microsoft still holds all the cards.