Analyst's next-gen predictions
Following on from this year's CES, Baird Equity Research analyst Colin Sebastian has revealed predictions surrounding the next generation of consoles.
The most immediate revelation is the suggestion that new consoles could launch with a price around $350 - $400 USD (£217 - £248), thanks mainly to lower production costs.
"Given the fragile state of the console game market, we expect the E3 trade show in June will take on added significance, most likely providing the industry with the first public opportunity to examine next-generation hardware," wrote Sebastian in a note to investors (via GamesIndustry.biz).
"Our checks suggest that next-generation console hardware will be largely built from 'off the shelf' high-end PC components, along with hybrid physical/digital distribution models, enhanced voice controls and motion sensing (Kinect integration with every Xbox), and broad multi-media capabilities."
"Moreover, a PC-based architecture (Intel chips in the case of Xbox) should have a number of advantages over custom-developed silicon: for one, the learning curve for software developers will be shorter than completely new technology. Second, the cost of production and retail price points should be lower than prior console launches."
"Third, it will be easier to build online services around PC chip architecture, including flexible business models (free-to-play, subscriptions) and multi-media (over the top) content offerings. For Microsoft, this design will also allow for more integration with Windows 8 and Windows Mobile devices," he added before going on to speculate about possible launch windows.
The analyst expects an October launch for Sony's next console, followed by a November launch for the latest Xbox. Though it's worth noting that Sebastian thinks the Playstation 4 might suffer from delays as there "may be early production issues with Sony's PS4."
With regards to Nintendo, the Baird Equity Research report states: "We remain concerned that Nintendo's innovative Wii-U console will lack broad appeal beyond the core Nintendo fan base."
Earlier today reports emerged suggesting Sony are aiming to announce the PS4 before this year's E3.
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