Pachter - PS3 Price Cut Coming This Year

[KB24SD]

PS3 to Cut Price First This Year, says Pachter





Reacting to the December and year-end NPD data, Wedbush Securities analyst Michael Pachter has noted that 2010 wasn't so hot, both starting and ending on a weak note. He cites the precipitous drop in revenues from the music genre, the Wii and DS software sales, each of which "were down 20% in 2010, in spite of substantial growth in each console’s respective installed base," and finally he blames the stubborn hardware price points.

"We believe that sticky price points for the three major consoles triggered a 5% overall decline in console hardware unit sales for 2010. Handhelds performed even worse, with unit sales down 25%, contributing to continuing software weakness," he said. Pachter said that the platform holders will all need to cut prices, and he sees Sony doing so first.

"We fully expect each of the three consoles to be offered at lower prices in 2011, with Sony likely leading the way as its manufacturing costs continue to decline. A $50 price cut should be sufficient to drive 5% software sales growth; and, coupled with a resurgence in handheld software sales and an easy comparison for music sales, we think that overall software sales growth could hit low double digits in 2011," he stated.

The combination of a price cut and a robust exclusive games lineup could do wonders for the PS3 platform in 2011.

Link:

http://www.industrygamers.com/news/p...-says-pachter/

So glad I took advantage of the amazon deal last month which gave you a $100 future credit back. I also today just sold my OG PS3 60GB that was still working for $240 after I listed it on craigslist a few days ago.