Analyst: PS4 and next-gen Xbox games will cost $70

Michael Pachter, the well-known game financial analysts who works at Wedbush Securities made a prediction this weekend at a panel at the the South by Southwest panel in Austin, Texas, that Microsoft's successor to the Xbox 360 would win the next generation console wars. Now he's also predicting that gamers will have to spend more money on their next-gen Xbox games as well as for games made for Sony's PlayStation 4 console.

GameSpot reports that during his talk, Pachter said that games for both consoles would cost $70, which is $10 more than the current high price most PlayStation 3 and Xbox 360 retail games. The $60 price tag was $10 higher than games for the PlayStation 2 and the original Xbox.

Pachter's predictions would seem to be going against statements made by a Sony executive just after the announcement of the PlayStation 4 in February. At that time, Sony Computer Entertainment America CEO Jack Tretton claimed on CNBC that PS4 games would have a maximum price of $60. There's no information on why Pachter believes that PS4 games would be $10 higher than Tretton's limit.

As we have mentioned before, Microsoft has yet to make any official next-generation console announcements, although the consensus is that there will be an official reveal sometime next month.

Source: GameSpot | Image via Sony

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In the UK most games are priced at £40 ($60). But the AAA games cost £45 or £50 which is $68 or $75. I wish they just limited the price to £40.

Edited by Gaffney, Mar 11 2013, 8:40pm :

For a good time, warm up your favorite search engine and dig for old articles ('05 or so) about what 'analysts' had to say about PS3/360 prices, adoption rates, etc.

Analysts are GREAT at analyzing existing data and giving us really cool factoids we wouldn't have otherwise picked up on.

When it comes to predicting the future, however...woof. Just...just stop.

In fact, seriously now, why are we going to analysts to predict anything about future generations of products? Where is the cross section in whatever data that let's them predict what's on the other side of the gaping chasm between two generations of products? It's insanely hard.

It's funny as some other site ran down a list of Pachter predictions from the previous gen and I don't even think half of them were correct. I'll have to see if I can find that article again as it was a little while ago I came across it.

Hmm. Well it is true that Microsoft are changing their business model to rely on subscriptions, I think this is a bit much. Not even most Kindle's are that cheap, even though Amazon rely on the same business model. I think $200 is more likely.

Josh_LosAltosHills said,
so we get unfinished games, for which we then pay $20 DLC's like a month after release for $60, now they want to (allegedly) bump it to $70? sure why not.

Don't worry Josh, for that extra $10 you're going to ensure games are actually finished on time with the new console games, and DLC will be released at the same time as the game so you don't have to wait a month.
Unfortunately, the finished parts of the game WILL be the DLC... we all know how it goes.

Josh_LosAltosHills said,
so we get unfinished games, for which we then pay $20 DLC's like a month after release for $60, now they want to (allegedly) bump it to $70? sure why not.


I don't buy dlc for most of my games, yet I've still played them start to finish and not felt like anything was missing...

They should be PAYING ME $70 for beta-testing every game released.
Quality control has been thrown completely out the window with games today.

Hey it's better paying $70 up front than paying over $100 over the course of the game via micro transactions.

Azusa said,
Hey it's better paying $70 up front than paying over $100 over the course of the game via micro transactions.

Hmm. I dunno. It depends how well the game keeps you addicted to playing it. If you're playing a game that have micro-transactions as well as others, you might be out of pocket as it were.

But if it was the only game you played for 12months, you might end up saving $40 if you were to buy just two $70 titles.

My girlfriend and I played World of Warcraft for a few years, and I used to joke that it actually saved us money since we didn't buy other games even with our monthly subscription cost of WoW, and it was true... But it just destroys your real life.

I've wondered about this for a while. Game prices have stayed basically the same for generations now, while development costs have gone up and up.

Which means we've been ripped off for ages. Even today, games are still expensive.

Halo 3 had 200 million revenue on the FIRST DAY. 3.4 BILLION revenue for 6 games in the series.

GTA IV cost about 100$ to make.. It grossed 500 million on the first week.

Seriously, games are seriously overpriced, should cost 40$ max. I only buy used games or new below 20€. I'd rather wait a few months than spending 50€ more on a brand new game. (Yes, 50€.

And in some countries, like Portugal, prices are outrageous. Halo 4 costs 69.90€. That's 90$ USD!

Sure, if you're using AAA titles as an example, a small minority of games are bringing in the sort of money you're talking about though.

When 360 and PS3 first launched a lot of games were that expensive anyway. They eventually started selling them at the usual price.

This guy is irritating ... who is paying him?! He makes too many predictions that in many cases seem either so ludicrous and out there , or blatantly obvious ... I don't really think he makes any valid addition to ANY industry he's hired by.

I predict next gen consoles after the next Xbox and PS will cost $80, a $10 higher than previous gen games!

Pfffft, analyst.

FarCry3r said,
I predict next gen consoles after the next Xbox and PS will cost $80, a $10 higher than previous gen games!

Pfffft, analyst.


Yeah probably, another 15 to 20 years it'll go up another 10 bucks.

Seems to make a lot more sense to keep the normal price at $60 and continue with the model of preorder exclusives, special editions and DLC. It's much easier to get people to pay more if they feel like they're getting something extra.

Those incentives don't work with me, as I know I can buy the game for practically half price just a month or two after it comes out. That makes me happy to wait.

I recall plenty of NES games being $50 when they came out. I'm sort of surprised we're not at $70 games already. That said, this cheap ol' whore won't pay more than $30 for a game. I'll just wait a year, thanks.

Skwerl said,
I recall plenty of NES games being $50 when they came out. I'm sort of surprised we're not at $70 games already. That said, this cheap ol' whore won't pay more than $30 for a game. I'll just wait a year, thanks.

Hehe. I only really buy pre-owned xbox games so I only really pay $15 anyway. I hate myself for doing it as the developers/publishers don't get a sale for it, much like as if I had pirated it. Except someone gets paid twice, the re-seller store. I wouldn't pay the extra if I had to, I'd simply not play xbox games.
I already play games that are several months (sometimes years) 'out of date' from the latest release, but if you try and buy them direct from the Microsoft store on the xbox, the prices are the same as if they were new releases.

Still, won't have that problem with steam sales steam box, ftw lol. Yes, I'm joking, I'll stick with a real gaming PC.

Skwerl said,
I recall plenty of NES games being $50 when they came out. I'm sort of surprised we're not at $70 games already. That said, this cheap ol' whore won't pay more than $30 for a game. I'll just wait a year, thanks.

Me too, GOTY editions

Plus Gog.com / Steam compete for my money, so it's typically console exclusives that I purchase.

The developers work their behinds off, I don't mind the $10 raise for great games like Halo & others I've yet to try later on in the next-gen.

Mr.XXIV said,
The developers work their behinds off, I don't mind the $10 raise for great games like Halo & others I've yet to try later on in the next-gen.

Unfortunately developers will never see that extra $10. What you'll actually be doing is paying for more marketing and lining the pockets of the likes of EA so they can milk you some more for yet another version of the same game.

Damn! No, that's not too bad. Well for console it's worth it, especially an XBOX.
But console games have always been in that general price range.
I've paid between 60 and 80 bucks for console games going back 20 years even.

seankovacs said,
I can see this - greedy ass dev companies.

Yeah greedy ass dev companies wanting money for the tens of millions they put into development, how dare they.

I wouldn't put it past publishers.

Look what Activision did to the PC game market; most AAA games are now $60 when they've been $50 for over a decade.

This is the reason I stopped buying AAA games on release day; now I only buy them when they're on discount (if even then too, as most are just garbage mainstream console port type games now).