While Microsoft Corp.'s Xbox One X console, set for release Nov. 7, should appeal to hardcore gamers pursuing top-of-the line hardware, its $499 price tag could prove a tough sell for the average consumer, analysts said.

With its 4K-capable processor and graphics processing unit, the Xbox One X is a more powerful version of the original Xbox One models. In that respect, it is similar to Sony Corp.'s PlayStation 4 Pro, which launched a year ago as a mid-generation successor to the original PS4. However, the Xbox One X differs from the PS4 Pro in that Microsoft's latest console marks a more significant hardware upgrade from its prior iterations.

It's a difference that Microsoft has played up since the Xbox One X was announced at E3 in 2016.

"[Microsoft's] message to consumers was that they could settle for a PS4 Pro or wait a year to buy something way more powerful," said Michael Goodman, director of digital media strategies at Strategy Analytics.

Goodman said the Xbox One X's superior hardware allows for better support of Ultra HD technology than the PS4 Pro, a strong selling point for gamers who are also interested in 4K TVs. He added that its $499 price tag, while higher than most video game consoles, is still significantly less than the cost of a gaming PC capable of outputting the same level of 4K graphics.

Even so, consoles costing more than $399 at launch have initially underperformed their cheaper competitors — at least until their prices dropped. Greg Potter, an analyst at S&P Global Market Intelligence's Kagan media research unit, believes the Xbox One X will follow a similar sales trajectory.

"With a price point at $499, most consumers will wait until we see a price drop before purchase," Potter said. "I do not expect to see significant sales of the Xbox One X at launch."

Kagan projects the Xbox One X will ship nearly 1.2 million units in the last two months of 2017, and 3.7 million for all of 2018. The forecast assumes that the console's $499 price will hold steady through 2018, with Microsoft including a game in a $499 bundle pack beginning in November 2018. Potter expects Sony will reduce the price of its PS4 consoles this holiday season, further pressuring the One X's competitiveness on price.

Video game research firm SuperData forecasts price cuts for PlayStation consoles in the mid-fall. Sony has not made any announcements about imminent changes to its console pricing.

SuperData senior analyst Carter Rogers pointed out that price is not the only hurdle for the Xbox One X to compete in the market.

"Microsoft still has a major disadvantage when it comes to getting gamers to buy into their ecosystem," Rogers said in an interview. "Sony is way ahead when it comes to exclusive games and the PS4 is seen as the default place to play big multiplayer franchises like Destiny and Call of Duty."

Rogers believes that Microsoft's decision to release all Xbox One titles concurrently on Windows PCs was designed to address this issue.

"Microsoft had no choice but to emphasize cross-platform play given how far behind Xbox One sales had fallen behind PS4 sales," he said.

Software is where the real money is made in the video games industry, Goodman and Potter both said, adding that the install base of gaming PCs increases Microsoft's addressable market significantly, allowing for a more level playing field with Sony.

"I don't think Microsoft particularly cares whether someone is a PC gamer or a console gamer as long as they have access to the games they publish," Potter said.

As the game console upgrade cycle is speeding up in some ways to mimic that of devices like the iPhone, with mid-generation updates out ahead of complete redesigns, game developers are forced to design software that can also work on the earlier hardware -- in this case the Xbox One and PS4, both of which were released in 2013. Most industry insiders expect a new generation of consoles to start rolling out by late 2019.

"Microsoft and Sony can't just release a new model every year either because the development side can't handle that," Goodman said. "However, the hardware side of the business is changing whether the developers like it or not, so they will have to adapt in the end."