PS4 and Xbox 720 expected to follow contract-based pricing model

Sony’s and Microsoft’s next-generation consoles, which will most probably be called PlayStation 4 and Xbox 720 respectively, are widely expected to follow contract-based pricing model.

As we know, Redmond-based software giant Microsoft recently tried cellphone pricing model in the field of consoles by offering 4GB Xbox 360, Kinect and Xbox LIVE Gold for just $99 to those committed to pay $14.99 a month. Apparently, the software giant launched this contract-based pricing model to appeal to those gamers who can not come up with the money to pay the upfront costs involved.

The next generations of the two rival consoles will leave no stone unturned to excel each other to capture the lucrative global market. Because the consoles will use the most powerful technology, the costs will most probably place these machines at a steep launch price, which could have a negative impact on their initial sales. Sony’s PlayStation 3 has already experienced tough times after launch, mainly due to its heavy price tag.

Thus, the idea of putting a contract-based pricing model for PlayStation 4 and Xbox 720 consoles into practice could counteract the high costs involved.

PlayStation 4, which has been code-named Orbis, is expected to launch in Japan May this year and in the US in October; while Microsoft’s Xbox 720 is expected to hit store shelves in time for Christmas 2013.