Xbox One to cost $399, PS4 for $349 says Pachter

Xbox One will retail at $399 at launch, while PS4 will run you $349, according to Wedbush Morgan Analyst Michael Pachter.

GI.biz reports that Pachter made his predictions in a pre-E3 address to investors today, during which the analyst placed the PS4's build cost per console at $275, and added that the Xbox One will cost $325 per unit.

Pachter added that Microsoft may still consider a subscription-based Xbox One model at cheaper cost, which backs up rumours of a $299 version.

In the address, Pachter added, "We believe the ability to watch live TV from a cable, telco, or satellite set-top box through Xbox One could entice an MSO to drive subscriptions through a subsidised box in exchange for a multi-year contract. The 'always connected' requirement for the Xbox One likely means that a broadband connection will be required, suggesting to us that ISPs may have an incentive to offer a subsidy as well.

"In addition, Microsoft could conceivably subsidise the Xbox One through prepaid Xbox Live Gold subscriptions (as it has done on a limited basis in the past) or premium Skype functionality as well. Similarly, Sony could subsidise the PS4 through prepaid PlayStation Network subscriptions, but unlike Microsoft, it does not have a history of doing so."

What do you make of the prices above? Do they make sense or are they too expensive? Let us know below.