Xbox One and PS4 News: Price Cuts Not Expected Until 2015, Analyst Claims

If you're waiting for the prices to drop on the Xbox One and PlayStation 4, you'll want to settle in; this could take a while. Annalysts predict the newly-released next-gen consoles won't see price cuts until 2015 at the earliest because of strong sales. 

Both consoles were launched in November 2013, the PlayStation 4 on Nov. 15 for $399 and the Xbox One following on Nov. 22 for $499. And both the PlayStation 4 and Xbox One have managed to surpass 1 million consoles sold mark. That demand is the reason that the consoles will not see a price cut anytime soon. Matt Matthews, a game industry analyst, told CNET that it is unrealistic for Microsoft or Sony to think about cutting the price of their consoles until at least 2015.

"The two new consoles will likely not have official price drops until spring 2015, at the earliest..." said Matthews.

There are several examples of how strong sales of a console correlate to delayed price drops. The original Wii from Nintendo launched for $249 and stayed at that price for three years due to the strong demand. The Xbox 360 was launched in November 2005 and did not get a price drop until 2007 because of the strong sales for the console. Because the demand for the consoles never abated, the console manufacturers had no reason to cut the price, and as manufacturing costs dropped the consoles became more and more profitable over time.

On the other hand, a poor launch of a console can leave manufacturers no choice but to slash the price on their hardware. The PlayStation 3 launched in November 2006 for a staggering $599, and the console failed to sell 200,000 units in two weeks. Eight months later, the PlayStation 3 received its first price cut.

While both the PlayStation 4 and Xbox One setting sales records right out of the gate and both still in high demand, it makes sense that Sony and Microsoft would hold off discounting their consoles until years down the line. Unless one begins to slash prices to try and jump ahead of the competition, do not expect the Xbox One or the PlayStation 4 to drop in price anytime soon.