Michael Pachter Reveals His PlayStation 4 And Xbox One BOM Estimates



Pachter’s at it again! If his BOM (bill of materials) estimations are correct, he comes bearing welcome news. A consoles bill of materials directly persuades console cost, and at this point Pachter thinks we’re looking at decidedly lower price points than what was previously rumored.

The analyst has predicted an estimated $275 bill of materials for the Playstation 4, and a slightly higher $325 estimate for the Xbox One (Gold plated Kinect?). If these numbers are true, or anywhere near what the actual cost will be to build these machines we SHOULD see a decidedly lower MSRP on next gen consoles than was previously reported. Either way it’s looking like Pachter is predicting the Playstation 4 will undercut the Xbox One by about $50 at retail.

Quote from Venturebeat below:

For [Xbox One], we believe a starting price of $399 makes sense given that the Xbox 360 Pro debuted at that price point in November 2005,” wrote the analysts. “Our estimate of the bill of materials for the Xbox One — based upon speculation regarding many of the specs — is around $325, suggesting that Microsoft could make a modest profit at the $399 price point. For the PS4, we remain confident that the new console will have a lower initial MSRP than the PS3, which had a lofty starting price of $599 that we believe negatively impacted its long-term popularity. We expect the PS4 to debut at $349, as our estimate of the bill of materials is $275.”

Those numbers would make it quite a bit easier to convert over to a next gen machine this Holiday season. Based on these numbers one has to ask themselves just how much that required Kinect peripheral is adding to the Xbox One material cost. We already know that Sony has more advanced specs under the hood, but it’s looking like they may make good on a lower price point regardless.

How will the lower price points affect your adoption of next gen? Is Pachter dead wrong (like he as been in the past)? Let us know in the comments below.

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Dylan Zellmer

Dylan splits time between games journalism, designing video games, and playing them. Outside of his deep involvement in the games industry, he enjoys It’s Always Sunny in Philadelphia, Shameless, A Song of Ice and Fire, fitness, and family.
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