Xbox One DRM focus will switch to price difference between PS4 - analyst

Wedbush Morgan analyst Michael Pachter has said in an investor note that Xbox One has a better chance at competing with PS4 this holiday season now that Microsoft has changed its DRM policies. The analyst also doesn't rule out a possible price cut should Sony's console lead the retail charge with it's lower price point.

Pachter believes that once the focus on Microsoft's online policy changes diminishes, the new focus will be on the $100 difference in pricing.

"The differential is due to the inclusion of Kinect with every Xbox One; Microsoft intends to offer a more robust hardware bundle than Sony will offer, and Microsoft is convinced that consumers will ultimately appreciate the value proposition presented by Kinect," he wrote in his note via GI International.

"Microsoft has not done a particularly good job of communicating the value proposition to consumers, but today's [policy] announcement will remove an impediment to the company's ability to get its message across.

"We are confident that with six months of focused messaging, Microsoft can fully level the playing field with Sony, and we expect the Xbox One to sell as many units as the PS4. If we are wrong, we think that Microsoft is prepared to lower price next year."

Both consoles will be released in time for the holiday shopping season, where both will go head-to-head in a bid for consumer attention.