Xbox Scarlett Price Drop SHOCK: Top Analyst suggests Microsoft has learned from Xbox One

Xbox Scarlett is still over a year away from launching but with the industry approaching another watershed moment, it's all most people can think about when it comes to Microsoft.

For consumers, we already know when the next console is coming, currently poised to release "Holiday 2020" but beyond this little else is known for the time being as Microsoft.

More recently, however, gaming and electronics analyst Michael Patcher of Wedbush Securities weighed in to give his own predictions on how much Microsoft might attempt to charge for their shiny new console.

This was part of a much larger conversation with the 1099 Podcast, hosted by Joseph Knoop, who is also a Weekend Web Producer at IGN.

"I think that you know, Microsoft has learned a lot. Now the open question is did they learn that a five hundred dollar console is too high a price point? Will they launch at 400? I think so."

As with most things right now, it's certainly not to be taken at face value, Microsoft could charge anything for the Xbox Scarlett.

But clearly, it's Patcher's job to be at the forefront of industry analysis so his comments can't be disregarded entirely.

Playing devil's advocate, it's worth keeping inflation in mind.

Back in 2013 you could only buy the original Xbox One with a 500GB hard drive, one controller and a pre-bundled Kinect sensor for a whopping $499.

But in 2017, the Xbox One X also launched at $499, with just one controller and a 1TB hard drive.

So whilst Patcher might be of the opinion that the next console could launch at $400, it's also worth taking into consideration how much the X launched at and this being improved next-gen hardware.

We suppose it all boils down to how much of a loss Microsoft are willing to take on their new console.

After all, console sales make up a tiny fraction of both Sony and Microsoft's overall earnings.

It's certainly more beneficial to take a slight hit on Xbox Scarlett's initial price, especially if it guarantees more users who will ultimately sign up for Xbox Live, Xbox Game Pass or Xbox Game Pass Ultimate for the foreseeable future.

Also, before we forget and for what it's worth, we'd suggest giving the whole 1099 episode a listen as well, because Joseph Knoop and Pachter also delve into much more.

The episode itself takes a look at, as already mentioned, Next-Gen consoles, but they also take time to speak about the future of GameStop, and what the future of game streaming looks like for Google Stadia, Microsoft's xCloud, and even PlayStation.

Sidenote, whilst the conversation around GameStop is more interesting for US-based gamers, the conversations more generally around gaming stores in 2019 is pretty fascinating, especially in 2019 when GAME is undergoing radical change in the UK.

You can also find more from The 1099 on the link.

The news from Patcher and the 1099 podcast follows on more recently from rumours that Microsoft has cancelled part of their next-gen console plans.

According to otherwise accurate intel from before E3, “Lockhart” was reportedly a device similar in power to the Xbox One X that'll come in at a cheaper price point than the “Anaconda” - the version that got revealed - a more powerful console aimed at the core gaming audience.

"There are more and more reports coming in that the leaked next-gen Xbox two SKU strategy is put on hold for now and Microsoft might go into next-gen with one SKU. I have no updates on this other than the fact that yes, obviously 1 1/2 years before release plans can change.

"My take: the idea of a "value" next-gen Xbox that is priced lower than the competition sounds great to reach more people. I don't see any substantial technical sacrifices to be made to games if you scale with resolution and effects that are part of the PC gaming everyday world.

It seems that Microsoft may have scrapped the 'budget' option in favour of putting more emphasis on a smaller device aimed at working alongside Project xCloud, Microsoft's own streaming service, which would simultaneously help bolster it's Xbox Scarlett offering.