Think the PS5 Will Cost $500 or More? Here’s Why Michael Pachter Isn’t Worried
Evolving technology is awesome—skyrocketing prices not so much. If you’re worried you’re going to shell out $500 or more on the PlayStation 5 though, think again. It’s really unlikely that’s going to happen, at least according to analyst Michael Pachter.
How much will the PS5 cost?
Pachter’s comments on pricing for the PS5 came during his most recent Pach Attack episode. Pachter stated, “I don’t think next gen consoles will be $500… though I guess the right answer is, let’s see what happens with the Xbox One X.”
Past Consoles Have Failed Above the $500 Price Point
Pachter’s reasoning concerns past sales figures. As he stated on his show, “The PS3 launched at $600 and it flopped. The Xbox One launched at $500, and it didn’t work, they had to drop the Kinect and bring it to under $400 before it sold.”
Consumers just don’t see $500 or more as a logical investment in a console. Whether the hardware only lasts half a decade or it becomes obsolete because a new generation of consoles is already on the way, most buyers just have a firm boundary they are unwilling to pass.
If for whatever reason Sony does choose to price the PS5 above $500, do not be surprised if we see a repeat of history where they are again forced to lower the price in order to drive sales.
How Soon Will PS5 Arrive?
Some extremely optimistic gamers are hoping that they will be playing on their new PlayStation 5 consoles before the end of 2018—but that probably is not too realistic.
According to Pachter, it is most likely that we won’t be seeing the PS5 until around 2020.
This is probably valid, considering that the PS4 is only around four years old now. Since most consoles last at least five years, 2019 seems like the earliest we could expect PS5. PS3 had a seven year cycle, so 2020 or even 2021 would be more likely than 2019.
Hopefully Sony won’t price the PlayStation 5 in excess of $500—and if they do, hopefully it will come down in price fast. We’ll just have to wait and see.