Microsoft could reduce Xbox One price "faster than forecasted"

The Xbox One could see a reduction in RRP earlier than previously anticipated, according to one US analyst.

"We think ‘winning’ is important to both companies," Wedbush Morgan’s Michael Pachter told investors.

"It is possible that Microsoft will reduce Xbox One pricing far faster than we have forecasted. Should hardware prices come down faster than we have modelled, it is likely that hardware and software sales will grow faster."

As it stands, however, Pachter believes Sony is the winner elect with forecasted sales by the end of 2016 of 37.7m units, 30 per cent ahead of Xbox One’s predicted 29m.

Pachter, ever a fan of Wii U, predicts 20m sales of that console in the same time period – and that’s on the presumption that Nintendo cuts the price by 50 per cent. He also says that it’s not beyond the realms of possibility that Nintendo will kill the console completely before 2016.

He also thinks PS4 will be $100 cheaper by 2016 and Xbox One $150 cheaper.