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Next-gen consoles could be cheaper, sooner

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26

Cheep

Jumping in to the next generation of consoles is expensive. Locally, the PlayStation 4 will be released at a recommended retail price of R6299. We have no idea what the Xbox One is going to cost here when it does get released, but we do know it’s probably going to cost even more. Activision though, believes prices will come down sooner rather than later.

Speaking in an investor call, Activision CEO Bobby Kotick said he expects prices of the next consoles to drop a little quicker than they did in the last generation – and installed user bases to grow quicker as a result.  The Xbox 360 saw its first price cut two years after release, while the PlayStation 3 saw its first one 8 months after availability…but only because consumers had a hard time coughing up $599 for the thing.

There are a number of reasons for that – but the biggest one comes down to manufacturing.

There are "lots of efficiencies in manufacturing that could drive hardware prices down sooner in the cycle," Kotick said, adding that "There’s no indication from our perspective that you’re going to see anything other than a very successful 7-8 years."

With both consoles using hardware that’s somewhat analogous to PC architecture without much in the way of real, custom-manufactured silicon, it makes sense that the cost prices to make the new consoles will decrease steadily – leading to cheaper hardware sooner than we saw in this current generation.

Last Updated: November 7, 2013

26 Comments

  1. Admiral Chief in 1986

    November 7, 2013 at 10:49

    What will a steambox cost precious?

    Reply

    • Weanerdog

      November 7, 2013 at 11:01

      Methinks the same as a comparable PC otherwise everyone will just buy that and load the free steam OS on to it.

      Reply

    • Devourer of Small Bunnies

      November 7, 2013 at 12:39

      What are we playing that its 1986 (my birth year so i thought you were flirting)

      Reply

      • Admiral Chief in 1986

        November 7, 2013 at 14:10

        Hehe, game was released last year, plays off in 1986

        Reply

        • Devourer of Small Bunnies

          November 7, 2013 at 14:22

          So its called 1986?

          Reply

          • Admiral Chief in 1986

            November 7, 2013 at 14:23

            Nope, set in 1986…

            Need a hint?

          • Devourer of Small Bunnies

            November 7, 2013 at 14:36

            I can only think of Hotline. Yes please?

          • Admiral Chief in 1986

            November 7, 2013 at 14:38

            Negative.

            Ok, think, Zombie Apocalypse…

          • Devourer of Small Bunnies

            November 8, 2013 at 11:46

            Fuck thats only like every game ever made

          • Admiral Chief in 1986

            November 8, 2013 at 11:46

            Ah, but which one plays off in 1986?

          • Devourer of Small Bunnies

            November 8, 2013 at 11:48

            Erm..

          • Devourer of Small Bunnies

            November 8, 2013 at 11:48

            Deadlight?

          • Admiral Chief in 1986

            November 8, 2013 at 11:50

            DING DING DING!!!!

            Winnar!

  2. Admiral Chief in 1986

    November 7, 2013 at 10:50

    Also, I can’t wait for Fox to appear to use this gem. Applying now:

    http://d24w6bsrhbeh9d.cloudfront.net/photo/aLKwbOz_700b.jpg

    Reply

    • FoxOneZA

      November 7, 2013 at 11:49

      Cute :}

      Reply

      • Admiral Chief in 1986

        November 7, 2013 at 14:10

        Heh, not this fox, the other one 😛

        Reply

  3. Alien Emperor Trevor

    November 7, 2013 at 10:59

    The only reason the price would come down quickly is because after the initial rush there’s a slow sales trend. If people are happy buying it a year later at launch price, they’ll keep it the same.

    Reply

    • Unalighned John (JJ)

      November 7, 2013 at 11:20

      Correct, you are.

      Reply

      • ToshZA

        November 7, 2013 at 11:28

        This is the smart way to go, economically. 🙂 If people buy it at launch price, no need to lower the price.

        Reply

        • Unalighned John (JJ)

          November 7, 2013 at 11:59

          The prices will inevitably go down, there’s no doubt about that. The first bunch of PS3’s were sold at a loss, so I think as costs get cheaper and the technology gets outdated, the prices will drop.

          Reply

          • ToshZA

            November 7, 2013 at 12:02

            Yeah, but it’ll be at the normal rate. Not in just a few months.

          • John's (JJ's) ????

            November 7, 2013 at 12:31

            True

    • Otto_ki

      November 7, 2013 at 11:57

      When the first slim version comes out the “PHAT” version will drop in price like a brick.

      Reply

  4. Weanerdog

    November 7, 2013 at 11:08

    Not sure about that, the components are not really new components but based on existing tech, the new consoles are more an assembly job than components specifically manufactured for them so any major efficiencies in the production of the AMD chipsets would have already occurred and as far as I know those prices have been cast in stone so any efforts in reducing cost on the AMD side will be for their own benefit. Sure there may be some cost cutting that gets passed on but I would be surprised if it were material amount and soon, unless the products are not selling and clogging up warehouses.

    Reply

  5. Ultimo_Cleric N7

    November 7, 2013 at 11:48

    As I have said before, this is why I am waiting to buy my PS4. At least a year.

    Reply

  6. oVg

    November 7, 2013 at 12:22

    NEXT GEN PRICE DROP WITH EVERY NEW SLIM VERSION?

    http://img.gawkerassets.com/img/1936nvtwvvg9sgif/ku-medium.gif

    Reply

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