Next-Gen PlayStation and Xbox will cost between $350 and $400.

Although many think it is unlikely Sony and Microsoft will use high end hardware in their next-gen consoles, Baird Equity Research believes that Microsoft and Sony will have to equip and use high-end PC components and not custom hardware.

It is because of this choice that these consoles are more likely to cost $350- $400 than the current price points we are used to.

The Research firm indicated that even if the consoles are expensive, the PS4 would be cheaper than the PS3 at the time of its launch, when it launched it had a price of $499 with 20GB of storage or $599 for a 60GB model.

They also said that Game Developers should be facing lesser hassle for creating games for the console. But on a personal note, if and/or when consoles have high-end PC hardware, you cannot help but wonder if the “essence” of console is somewhat lost and it is more like a mini-itx system with its own OS and game format. Also, would game designers bring more games to PC because of this?

Baird Equity Research pointed out that the PlayStation 4 and the next gen Microsoft console, that so far is believed to be called the Xbox 720, will be showcased at the E3 event and may release between October and November this year.

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