Our favourite analyst, Wedbush Morgan Securities’, Michael Pachter, has stated that the PS3 price will fall within a year.
Talking about the willingness of consumers to pay the PS3's recently confirmed price tag of £425 Pachter states: "The PS3 can command £425 from the hardcore and I think you'll see price cuts a year from now, probably to £300."
He goes on to compare consoles to other consumer electronics, saying: "I'm actually surprised that consoles are not priced more like other consumer electronics, with early movers charged a bunch and the mass market charged less." (Is "a bunch" an economic term SPOnG's not familiar with?)
He then chimes in with his expectations for the PS3 launch in March:
Pachter's fast becoming SPOnG's favourite analyst. His speculation is endless, ranging from the PS2's chances in 2007 right across to the likelihood of a Canis Canem Edit sequel. He's probably a bit annoying down the pub, though…
Will Sony drop the PS3's price that soon in its life cycle? Will the machine even be breaking even at its current price by then? Let us know below.
Source: Gamesdog
Talking about the willingness of consumers to pay the PS3's recently confirmed price tag of £425 Pachter states: "The PS3 can command £425 from the hardcore and I think you'll see price cuts a year from now, probably to £300."
He goes on to compare consoles to other consumer electronics, saying: "I'm actually surprised that consoles are not priced more like other consumer electronics, with early movers charged a bunch and the mass market charged less." (Is "a bunch" an economic term SPOnG's not familiar with?)
He then chimes in with his expectations for the PS3 launch in March:
"There will be a few more games by then, with several great games announced for release in May and beyond, so I expect a full sellout by the end of April… March is not too late, given Sony's production problems and only 800,000 Wiis sold in Europe last quarter… My guess is that the Wii will be up to near 1.6-2 million by March 23, but that is far from an insurmountable head start."
Pachter's fast becoming SPOnG's favourite analyst. His speculation is endless, ranging from the PS2's chances in 2007 right across to the likelihood of a Canis Canem Edit sequel. He's probably a bit annoying down the pub, though…
Will Sony drop the PS3's price that soon in its life cycle? Will the machine even be breaking even at its current price by then? Let us know below.
Source: Gamesdog
Companies:
Sony
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Comments
hollywooda 29 Jan 2007 13:17
1/7
I cant see Sony having a price cut within the 1st year, unless they get really desperate.
ohms 29 Jan 2007 13:31
2/7
They will have to cut the price by Xmas, or they will get shafted big time.
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YenRug 29 Jan 2007 14:56
3/7
and only 800,000 Wiis sold in Europe last quarter…
Someone want to contact this guy and point out that that should actually read:
and only 800,000 Wiis sold in Europe in December
by stating "quarter", it makes it sound like it took the whole 3 months to sell that many.
king skins 29 Jan 2007 16:26
4/7
ohms wrote:
They will have to cut the price by Xmas, or they will get shafted big time.
Can they afford to cut the price? They have said themselves that its hard to cost reduce the system.
sneakyduck 29 Jan 2007 16:33
5/7
Probably cos they make a loss everytime they sell one. If they reduced the price without decreasing the costs they'd just come out worse. At least that's what they used to tell me in University...
realvictory 29 Jan 2007 18:18
6/7
"I'm actually surprised that consoles are not priced more like other consumer electronics, with early movers charged a bunch and the mass market charged less."
That is how it works for consoles, isn't it? Although the price only goes down slowly. But unlike most things, consoles only come out every 5 years. Games reduce in price as much as DVDs and music, at least.
I think the PS3 will reduce in price as well, because at £425, the largest market for it is going to be ebay resellers. Unlike the other consoles' prices, much fewer people are likely to have a "spare" £425. Even if they only take £15-£25 off it, it must happen.
Quill 30 Jan 2007 01:48
7/7
i remember reading some time ago that Sony are one manufacturer who don't seem to cut retail prices, even as technology progresses. I think the bravia range of TVs was a case in point - despite offering a newer product, the old model didn't go down in price. I can't remember where i read that though.
Sales would have to basically halt for Sony to even consider lowering their price, i think.
Sales would have to basically halt for Sony to even consider lowering their price, i think.