Microsoft must cut price of Xbox One to beat PS4, Pachter believes

Video game analyst Michael Pachter believes the reason Sony's PlayStation 4 will beat the Xbox One is due to the price difference. The PlayStation 4 currently retails for $399 while the Xbox One, which includes a Kinect bundled with each console, is selling for $499. That $100 difference could be the reason "Micrsofot loses the next generation," according to Pachter.

"The reason Sony beats Microsoft is solely the price," Wedbush Securities analyst Michael Pachter said at the Game Monetization USA Summit in San Francisco (via GamesIndustry).

"Microsoft loses the next generation unless they cut price. If Microsoft drops its price to $399, I expect the sales to be equal to the PS4," he added.

Pachter's statements come shortly after Sony's announcement that over 2.1 million PS4 consoles have been sold worldwide since launch. Microsoft has yet to reveal Xbox One sales numbers, but did say they are experiencing "record breaking sales," while throwing out a bunch of meaningless stats.

I can't speak for everyone, but I know the $100 price difference was a large factor in my decision making. Does it make a difference to you?