Rumour - Next PlayStation and Xbox consoles to release for $400

Baird Equity research group suggests the next PlayStation and Xbox consoles will cost around $400. The analyst group has brought together a selection of findings from its time spent at CES, and also suggest both consoles will be announced before E3 in June.

How does this price compare to previous releases? It's a significant step down from the PS3 models that arrived for $499 and $599. Xbox 360 users won't feel much of a difference, as Microsoft's console launched its most expensive bundle for $399 in 2005.

Baird employee Colin Sebastian commented on the research in a note to investors:

"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," he wrote.

"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."

"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," he continued.

"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 also believes the PS4 will launch in October and Microsoft's console will follow in November.

Thanks, GI.