Michael Pachter talked about a rather controversial topic on the ‘Pachter Factor’ while answering questions from Twitter. Pachter discussed the possibility of the Xbox One Scorpio to fail as a console and all that entailed to that possibility.
To the question “What do you think it will cost?”, Pachter replied that Microsoft will aim to price it as much as the PS4 Pro. If the Scorpio is priced anything higher than $400 then it will not be as successful as Microsoft expects it to be, according to Michael Pachter.
“If they price it at $400, then they’re going to be okay. They’ll sell a bunch. If they price it above $400 meaning 5($500), then it’s a problem”, Pachter explained.
Michael Pachter said the reason behind this is because most 55” 4K TVs cost $600 and in most cases when buying a TV, everyone will opt for a 4K option. The pairing of a $400 console with this keep the total budget under $1000, a price point that is perfect for most gamers that choose to go the 4K way.
Pachter was asked by the same user: “What would it take for Microsoft to consider it (Scorpio) a failure?” and “If it fails would it be enough for Microsoft to stop making consoles altogether?”.
What Pachter had to say was that Microsoft would never even consider to stop making consoles because of the rich ecosystem that they’ve made with the Xbox services. Xbox Play Anywhere is a huge example of why this would never happen. Microsoft is earning revenue by making users pay the monthly subscriptions for consoles while migrating users to PC and essentially using more of their applications such as Windows.
“Microsoft sees the future which is a migration from console to PC, where the PC is where you’re going to file all your games and you play it on your TV and that’s why we have Xbox anywhere and Windows 10 gaming. They’re not going to get out of the console business because they want you guys to keep playing Xbox Live and paying them 5 bucks a month, they never want that to end because that’s real profit for them”
“They would consider it (Scorpio) a failure if their aggregate Xbox sales decline including Xbox One and Xbox Scorpio. If their aggregate sales go up, they’re going to be very happy to have two different price points for their consoles.”
Pachter predicts that the Scorpio will not make an impact if it is priced higher than $400 and that it will be a failure if it results in average Xbox sales going down. Let us know what you think Michael Pachter’s predictions in the comments section below!