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Sony might have a clear advantage going into next-gen with more powerful hardware at a better price point, but that will change quickly if Pachter's latest prophecy is correct.
Wedbush Securities analyst Michael Pachter expects Microsoft to drop the price of the Xbox One after what he expects to be a disappointing performance this holiday season. He stated to News 10:
They're going to regret the decision because I think people are now going to talk up Sony as the winner. The good news is Microsoft will cut the price shortly after Christmas - probably will.
For many the purchase of an Xbox One makes no sense. It delivers less performance, doesn't necessarily have better exclusives, and costs more not only up-front but in the long-run with a pricier subscription service. When you also consider that families are more careful than ever before about spending money on luxury items Microsoft has a tough hill to climb.
Although it looks like a disaster, the Xbox One's cable box integrations and fantasy NFL application make it attractive to a wide variety of demographics if the price is right. The challenge will be whether or not consumers buy into it at $499 and/or if Microsoft is willing to forego $100 of additional profit in order to get the device into more homes.
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