How Much Should The PS4K Neo and Nintendo NX Cost?

cre: How Much Should The PS4K Neo and Nintendo NX Cost?

Aunexpectedly, this has proven to be an exciting year for the industry when it comes to hardware launches – although the last big slew of console and handheld launches were less than three years ago , it looks like we’re already gearing up for some major new hardware launches this year. This includes the three new VR headsets that launched this year, of course – the Oculus Rift, HTC Vive and PlayStation VR are all major new gaming platforms for the industry that have launched or will be launched. in 2016 – but it looks like we’re also getting new consoles This year.

One of them, at the very least, was expected – Nintendo’s NX, which should be the successor to the disappointing Wii U, has long been marked as a 2016 launch. However, what was unexpected were these the rumbles of new hardware launches from Sony and Microsoft, both of which appear to be launching new PlayStation and Xbox systems. Effectively, therefore, the launch of new consoles by all Three companies is leading to a middle-generation reset — a whole new generation, so to speak.

What Microsoft is planning is still unknown – they were among the first companies to bring up the idea of ​​iterative consoles, but they came back to the notion soon after. Nonetheless, there are enough indications that we know they’re working on something new, and Xbox chief Phil Spencer himself hinted at an announcement of something beyond Xbox One. future. What this something is, however, is still unknown.

“Xbox head Phil Spencer himself hinted at the announcement of something beyond the upcoming Xbox One.”

On the other hand, the PS4K and Nintendo NX, while both equally enigmatic and unannounced, are much clearer to us – the PS4K appears to be a very progressive revision of the PS4, improving the console’s specs somewhat. base to lead to better performance and research games. The Nintendo NX is Nintendo’s newest console and is, by the consensus found in most rumors and leaks, supposed to be at least a bit more powerful than the current PS4 (where it would fare compared to the PS4K is unknown for the moment ).

So we have two new consoles coming this year that could claim to be the most powerful console ever released. The question is, will that be enough to sell them to the masses? Remember that the current console generation is only now takes off after almost three years wallowing in the shadow of the previous generation. Most customers have, in the last year or so, spent a few hundred dollars on new hardware. Why would they buy the NX or the PS4K?

The NX and PS4K will both have to make a compelling case for their existence, but their value proposition will be equally important to their ultimate mass-market appeal. In other words, the cost of the machines alone could make or break their fortunes in the market.

Surely Sony must realize that the reason the PS4 has done so well is because of its consumer-friendly pricing. When Sony announced the price for the system, it was only $399, which was $100 less than the Xbox One, and it delivered that cheaper price while also being a more powerful and capable console. This good price for the PS4 is just the most notable impact of Sony’s good price moves over the past few years, all of which have given them a measure of success – the PS Vita was also nicely priced at $249. , and the PlayStation VR is priced at an extremely low and attractive price of $399. Sony, it seems, understands the value of pricing its hardware fairly.

“Sony, it seems, understands the value of setting the right price for its hardware.”

How much should the PS4K cost then? It’s an interesting question that needs to be approached with the full context of the image in mind: the PS4K, although a newer, more powerful machine, is not intended to replace the current PS4 model. On the contrary, everything indicates that the two models will exist side by side in the market, much like how Nintendo sells several variants of its handhelds at the same time. Given, then, that the PS4K is do not Intended to replace the current PS4, but simply complement it, Sony has a lot more leeway in determining the price of the system. Since the PS4K will be do not to be the main PS4 SKU on the market, but just a high-end, high-end addition to the PS4 lineup, Sony may possibly price it higher than it could have done with a regular mid-cycle refresh , while retaining the standard PS4 model as their cheapest entry into the PlayStation ecosystem.

All that to say that the PS4K could be expensive – it will cost at least $399, which is $50 more than the current PS4 (although that difference could be as much as $100, if Sony drops the price of the current PS4 to $299 permanently – as it should), but eventually we might see it hit $449 as well. This would be a high-margin SKU sold at the high end of the market, to those willing to spend a little extra cash to get the best their money can buy. At the same time, Sony won’t risk alienating its mass market base either, as the current PS4 will continue to be sold at a lower price. Basically, they have their cake and eat it too.

That said, a $449 price tag for the PS4K honestly seems unlikely – $399 seems like what Sony will be targeting, as that seems like the magic price point for them. If they drop the price of the base SKU to $299 during this period, then they have a healthy price difference – if not, however, then Sony can make a persuasive and implicit argument for all buyers of the base PS4 SKU to spend just $50 more and get the best PS4 SKU on the market. Considering all of these competing factors, we’d say Sony will eventually price the PS4K at $399, with the base PS4 SKU price likely kept as-is at $349.

“Nintendo’s strongest market, traditionally, has been the family market – the family market is do not to spend a lot of money.”

Nintendo is a much more interesting case to discuss. Like Sony, they too have learned the importance of price, but for opposite reasons. The Nintendo 3DS and Wii U both launched at historically high prices of $249 and $349 respectively – and both fared poorly in the market, until Nintendo lowered its prices and managed to reverse it somewhat. its performance. Generally, in the past, Nintendo did their best when they kept their prices low, appealing to the mass market with their products, so to speak. This is particularly important because Nintendo’s strongest market, traditionally, has been the family market – the family market is do not watch spending a lot of money.

But any discussion of the failure of the 3DS and Wii U at higher prices must be tempered by the realization that Nintendo was essentially trying to sell what was obsolete technology at high prices – when yes, the 3DS and the Wii U had state of the art autostereoscopy and low latency streaming technology going for them respectively, it was basically half a decade old technology sold at outrageously high prices . The market did not perceive them as good value for money at these price levels, and it reacted appropriately.

The NX, by all accounts, seems to be different – while Nintendo is likely to skip over the superfluous media functionality that the Xbox One and PS4 seem to espouse, it’s said to be a capable machine – at the very least more powerful than the PS4, and, depending on how it ultimately plays out, possibly more powerful than the PS4K too – at the very least, it would be in the same general hardware power neighborhood as the PS4K.

Then it’s also the fact that Nintendo has now realized the value of selling its consoles at a loss when needed – they’ve done it with both, the Nintendo 3DS and the Wii U when needed. Nintendo probably won’t mind selling the NX for an initial loss as much as it would have before.

“Any discussion of the 3DS and Wii U failing at higher prices must be tempered with the realization that Nintendo was essentially trying to sell what was obsolete technology at high prices.”

Given all of this, then, how much should the NX be priced at? If we assume that Nintendo will still want to appeal to its traditional home market, but the NX is a capable and powerful machine somewhere between the PS4 and PS4K in terms of power, which means it won’t be perceived as obsolete, technology out of value, and that they’re ready to take a loss on their systems now, then Nintendo’s best price to sell the NX for is likely to be $349 – at that price, the NX will seem like good value for most families, and avoid the ‘premium’ price tag associated with prices of $399 and above, they will be able to make a good value proposition (a very powerful machine being priced cheaper than the $399 predicted by the PS4K), and probably not enough of a loss for it to put a serious dent in their balance sheet – in fact, depending on how the NX is designed, they may even break even or make a small profit for themselves .

Of course, these are only predictions and projections – the final price may vary. sony may decide to be competitive and kill with PS4K pricing, and try to undermine Nintendo, a strategy they’ve tried with competition in the past with PS4, PS Vita, and PSVR. Nintendo could decide to change strategy, rebrand and reposition itself as a “premium” alternative for the console market. The Xbox One Elite may throw a wrench in Sony and Nintendo’s plans by being a much more powerful machine than either, retailing for just $299 – right now, that’s understandably impossible to know.

But given what we do know at this time, or think we know, anyway, we feel comfortable predicting the prices of the two systems we predicted above. Whether or not Nintendo and Sony go for those prices remains to be seen – and that’s, among other reasons, why we’re so excited for E3 this year, when the gauntlet for the next round of the console wars will likely be down. in the ringing seriously.

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