Pachter predicts PS3 price cut as Sony claims it’s early days yet
The PS3 has now been on the market for two whole years, and in that time, it seems to have been struggling to hit the huge sales expectations of people expecting the new Sony console to achieve PS2-like sales figures early on. But according to Sony, all is fine as it’s still early days for the console. Meanwhile, Michael Pachter is predicting an April price cut.
I own a PS3 (quelle surprise) and am insanely pleased with it. But even I, happy as a pig in mud, can see there is a lot more potential there, and whether that potential will ever be achieved remains to be seen. If it is achieved, and the obvious potential becomes reality, then sales could massively increase from the lowly position they are currently.
But for all the good there is with the Playstation 3, there is one huge problem stopping the console really selling to the mainstream in the way the Wii and to a lesser extent, the Xbox 360 has: price. The PS3 is just too damn expensive right now, especially when there are two alternatives open to consumers, and the fact that we are slap bang in the middle of a credit crunch.
Sony has ignored the countless calls for a substantial price cut we’ve seen so far, and seems determined to hang on until the console is breaking even before cutting the cost to consumers. However, Michael Pachter, Wedbush Morgan analyst and chief-crystal ball gazer thinks he sees light at the end of the tunnel.
According to PC World, in his latest speculation on 2008 holiday sales and beyond, Pachter stated that he thinks Sony will cut the price of a PS3 by $100 in April. In the States this would see the price drop from $399 to $299 and a similar price cut in Japan and Europe would no doubt follow. Pachter added that “Once the PS3 is at a more affordable price point, we think that sales of that device will once again begin to grow.”
Everything seems to be pointing towards an April price cut and I agree with Pachter’s assessment that it would massively help sales if it happened. I know quite a few people who are either waiting for the price to drop or who have bought a Wii or Xbox 360 instead of the PS3 because it’s currently too expensive.
Meanwhile, Sony doesn’t even seem bothered by the perceived disappointing sales figures for the console so far. In an interview with Gamasutra centered on the PS2, John Koller, director of hardware marketing at SCEA, said “The PS3 is still in its early adopter phase, tech-oriented consumer… they’re interested in the multi-functionality of the system.”
The PS3 may well still be in its early adopter phase but isn’t two years enough time for that phase to have passed already? No games console can survive on early adopters alone and Sony clearly needs to do something to invigorate sales of the console before the mainstream passes the console by entirely. A price cut would seem to be the obvious first step.
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January 15th, 2009
Out of genuine curiosity, what was Pachter’s last accurate prediction?
Anyway, here are the few major phases I can think of off the top of my head for Sony to move on, but not necessarily in this order: PS2 production stops, PS2 software production stops, PS3 breaks even on manufacturing to sales costs, PS3′s bc put back in, PS2 bestsellers on PSN (preferably with trophies), PS3 price reductions (likely $50 or less at a time), Blu-Ray disc cost reductions (likely $5 or less at a time), more 1080p option games.
January 15th, 2009
*see’s patcher associated with another claim, leaves article*
January 15th, 2009
I’m I the only one who isn’t familiar with this Pachter fellow?
We all know the price cut is coming. Manufacturing costs have been cut on the PS3 by 35%… The have managed to make the cell smaller… Sony’s best bet in my humble opinion, would be to introduce a cheaper, slim model and have the new console’s release coincide with one of the larger first party game releases.
January 15th, 2009
Carl – Question: Have they added achievements to the original Xbox games on XBL? If so, that’s pretty cool.
January 15th, 2009
No, hence the question. With his track record he’s like the Uwe Bolle of videogame industry predictions.
No, they haven’t added achievements to original XBox games, which is one of the reasons why I suggested it for Sony. It would be perfect to further differentiate themselves from the 360 while adding more value to the buyer.
January 15th, 2009
I think Dave is messing with us by putting the word “potential” in every sentence in the second paragraph!
CarlB,
I don’t see the PS2 going away until Sony can get the price down on the PS3 ($200-$250) or the sales die off. If they quit production now it would just drive more people to the 360 and Wii. Of course they are losing their customer base to them anyway, but why accelerate it.
January 15th, 2009
I just hope the price drop doesn’t come to late.
January 15th, 2009
I have to agree with Wylie – As much as I would Love backwards compatibility, downloading PS2 games from the Store, and trophies… It seems to be in Sony’s best interest to keep the PS2 separate from the PS3 at least for now. I think it will inevitability end up coming in a firmware update down the road at some point, maybe a few years or so.
January 15th, 2009
Wylie77 and Barnabe,
I agree, I was just listing things that would eventually help PS3 sales, not things that should be done right now. If they did go by a 10 year cycle for PS2, it would be phased out sometime next year.
January 15th, 2009
i wonder if pachter knows that his predictions can actually have a negative affect on ps3 sales. given his track record he really should just stay out of it.
i don’t know how he keeps his job with a oh-and-five record. this clown is never right.
January 15th, 2009
That was my first thought kev, but I was thinking there had to be some reason people listen to this guy, right? I am not a trained analyst but I would say if there is a price cut in April, it would be about half what he predicts.
January 15th, 2009
Hey, didn’t they do this same poll last year? (looks left and up) That one wasn’t so accurate (how many times do you have to say an affirmation before it comes true? – I will win the lotto, I will win the lotto…).
January 15th, 2009
Kev,
He’s like a weather person. How often are they right and yet they get to keep their jobs.
Seriously though he can keep his job because people still print and post his comments and predictions. Maybe he’s more like Nostradamus, he just throws out thousands of predictions and when one comes true he can say “see I predicted that”!
January 15th, 2009
The difference is the weather person is usually right at least once a year. Seriously though he can keep his job because predicting the videogame industry isn’t his job. Even Nostradamus had a couple of hits in his first years.
January 15th, 2009
I still don’t know who this guy is?
January 15th, 2009
Maybe he just gives fantastic hummers to his boss. Could be the reason they keep him around.
January 15th, 2009
Barnabe,
He’s just an analyst who makes predictions on console sales. I forget who he works for. The blorge refers to him quite often. Not because he’s reliable, but because we all will complain about how unreliable he is.
January 15th, 2009
this is pure speculation an as far as im concerned ps3 wont drop prices untill next holiday season.as far as of right now they will include bundles with games,movies,headsets,hdmi cables, or something along those terms. they have a great library of games coming withch should help with sales. gosh ppl i dont even wrk for the gov’t and i can see this coming….lol jk
January 15th, 2009
pachter doesn’t either, fortunately.
January 15th, 2009
youre so right… how can pachter an analyst keep a job… while you… a nobody… has no job or credibility in the video game industry???
I dont take these predictions seriously… because they dont affect my life in any way… but I do wonder… if pachter is so unreliable… why does he always get invited back to The Bonus Round?? maybe he does know something we dont… maybe he is good at what he does…
whatever… I already have a PS3… I dont need to know how many other people are going to buy it… you buy it or you dont… its as simple as that…
ITS GOOD TO BE BACK!!!
January 15th, 2009
DWH!!! YOUR BACK! AND YOUR FRONT! YOU’RE BOTH OF YOU!
-Arvis
January 15th, 2009
Back? where did you go?
January 15th, 2009
dwh – just because someone is an analyst at a financial firm does NOT mean they know more than others. the analysts at S&P is proof of that. (read; the guys who rated pools of C risk loans as A due to their sale size)
the reality is, he needs a better due diligence process for his predictions since hardly any have ever come true. so far his technique seems to consist of licking his finger and feeling the wind blow.
he keeps his job simply because noone is losing any money on his predictions.
it’s hilarious you call people you don’t know a “nobody” w/o knowing their education, background or station.
way to underscore your ignorance, dwh…lmao..
January 15th, 2009
nice Arvis… nice…
I call you a nobody kev… because if you were a somebody… you wouldnt troll around here trying to call us hippocrite and call the writers fanboys…
isnt it sad that you talk more about these companies than about video games??? so far all I know about you is that you hate Sony for the PS2 and you have a love for Forza and Cliffy B… who in your words… is a “Legend” in this industry…
yes… I would call you an idiot from those examples…
I had a long day barnabe… been a while since I was out of the house for such a long time… now trying to play COD 5 … but this bitch is fucking with me… what a whore COD 5….
January 15th, 2009
DWH,
Just to calm you down I’ll give you some useful info about going outside your house. That big fire looking ball in the sky is called the Sun. And the metal human carriers on wheels are called cars. That should get you started.
January 15th, 2009
now youre just toying with me wylie… everyone knows that the big fire looking ball is God’s lightbulb… pfft noob…
January 15th, 2009
COD 5 cant connect to the Activision server… thanks a lot Treyarch…
January 15th, 2009
this is great… after a hard days of… something… I come back and I DONT GET NO COD 5 AND I DONT GET NO RESPONSE from the blorge twats…
I feel so lonely… *sad face*
January 15th, 2009
gamesblog.ugo.com/index.php/gamesblog/more/dear_guerrila_killzone_2s_controls_still_need_work/
gamesblog.ugo.com/index.php/gamesblog/more/killzone_2_review_build_numero_dos/
the comments are hilarious… they are like kev on a sugar high… the actual article is more like nitpicking… just read the comments…
January 16th, 2009
Are you the type of person who constantly talks to himself in an empty room?
January 16th, 2009
harry is starting to get suspicious… note to self… get rid of him…
January 16th, 2009
darkwhitehair,
Pachter has a job and credibility in the videogame industry?
January 16th, 2009
The problem Sony have is that anything they do will be matched or exceeded by their competition.
January 16th, 2009
dwh – you really need to buy a pet, dude. i only call those hypocritical, hypocrites.
yes, i do call davep a fanboy. blame him, not me. he’s the one giving the impression.
January 16th, 2009
kev,
This is actually a pretty balanced article (Good job Mr. Parrack). Where does he give you the impression that he is a fanboy here in the information presented? If anything he points out it’s flaws. Okay, so he does say he “is insanely pleased” with it and “happy as a pig in mud”, but he also points out the Wii and 360′s lead, how it is too expensive, Sony ignoring it’s customers, describes Pachter as a “crystal ball gazer”, how PS3′s sales figures are disappointing, how the “early adopter” phase has passed, and that Sony clearly needs to take action to invigorate sales. These are not usually things that PS3 “fanboys” usually do.
January 16th, 2009
kev,
I might have agreed with you last year on this, but Mr. Parrack has clearly stepped up his game.
January 16th, 2009
@Happy You have no idea what your talking about.
Nintendo and MS hasn’t matched them with a quality piece of machinery. Sure the wii is solid but week. and the 360 is strong but unreliable.
Lets see them match that. Price isn’t everything and the only reason the xbox is selling more is because the PS3 is too expensive not because it cost more than the 360. people simply can’t afford it. Can’t you get that through your head?
January 16th, 2009
ncaissie
Try to keep your angry fanboyism to yourself k?
The 360 was unreliable in it’s 1st incarnation, the lastest jasper (like the Falcon) mobo units have been fine.
Your silly backward-looking point about pricing (it’s not that the 360 costs less, it’s that the PS3 costs too much) is just flannel.
When PS3 gets a cut so too will the 360 leaving the PS3 still expensive for what it is and sales will stay stalled.
PS3 offer nothing over the 360 for gamers, that is and will remain the PS3 most glaring problem.
Of course that’s what you get when you’re used to launch a video format.
Your own rather silly devotion to the PS3 console doesn’t alter that one little bit.
January 16th, 2009
ok kev… as I said… if you know so much about the video game industry… start a blog… start a video game website… lets see how respected you are in the industry…
happy… you have any proof that the jaspers dont have red rings???
January 16th, 2009
zing!
January 16th, 2009
darkwhitehair… you have any proof that the jaspers do have red rings??? (a hundred fellow PS3 minions scramble to buy new 360′s and rig them to show red rings on YouTube)
January 16th, 2009
no I dont… carl… and I never claimed the new jaspers have Red rings… if they dont… then thats great news… because then Id get a jasper…
you people still think I hate the 360 dont ya???
whatever… dont care/…
January 16th, 2009
so touchy darkwhitehair… where is the old cuddly warm and fuzzy dwh we all know?
January 16th, 2009
I just hate it when people bring up old arguments and use the same excuse to a new discussion…
I care about the Red Rings because I care about the 360… same way I care about the Wii and its games…
for once… Id like to discuss video games and their consoles in a civilized way…
as I said… if the red ring problem is gone… then Im happy for you… because to me… the “lack of games” on the PS3 has certainly gone…
January 16th, 2009
there he is (witch hunter theme plays in background)… I KNEW you cared darkwhitehair! (and caring is half the battle). Sorry if we got off on the wrong foot here… but I think we are tracking when you say “I just hate it when people bring up old arguments and use the same excuse to a new discussion…”
To my knowledge though, there have been no red rings on the jasper, but alack and alas, I have no real “proof”.
The desire for civilitay, good sah, is the sign of a good mind, bravo, and good night.
January 16th, 2009
dwh – i don’t need to blog. Davep has proven you don’t need to know anything about the industry to blog…heck, even calling himself a “casual gamer”.
the reality is; you know very little about gaming outside the ps3 as proven daily. i’d suggest stop hitting the submit button.
January 16th, 2009
carlb – you are correct. and i haven’t called davep a fanboy in some time.
January 16th, 2009
WAIT CARL NO DONT GO!!! good on the jasper… I head from the Giant Bombcast… that according to them… the PS1 and PS2 were really bad hardware… and they went through several ones… same thing with the xbox… they will get better…
boy Im gonna be so pissed if my 360 red rings in like a week… when that happens… Im gonna come after you carl…
ofcourse you dont need a blog kev… cus no one would read it… no one would care because you would say the same shit over and over again… and you keep coming here… give dave parrack more page views… and he gets more ad money and can buy like two 360s…
fucking ironic…
January 16th, 2009
no prob dwh, you can crash at my place while we play on my 360, PS2, DS, and PSP for a couple of weeks (bring your memcard with profile to keep track of your achievements and your PS3 so I can play), then split the comp’d live you get afterwards. I hope you like Pizza Hut super supreme and or Carne Asada Burritos w/Louisiana Hot Sauce with wine/beer while you admire the Cali babes. Hopefully it doesn’t go out on you before I get back though, but you are still welcome to visit me in Iraq though (you still have to bring your PS3, card -for the plt 360′s- and other consoles with you… we’ll tell them you work for the USO or something). Haul your friggin tv over too while you’re at it.
kev,
nice to see you recognize it… sheesh, everybody is getting better around here (maybe even me… nah).
January 16th, 2009
hahahahah dude youre so drunk… hahahahahaha
I think I can make it as a comedian… I can just make “yo momma” jokes all day…
so dont you get bored with the JRPGs??? dont the stories get old??? my only problem is the combat isnt “real timey” enough for me… are there any JRPGs that have combat that makes you get more involved??
January 16th, 2009
darkwhitehair,
I only wish I had access to alcohol out here… although I did here we might be getting some beer for certain sporting event which I don’t give a crap about… that will be niiiiccceee. In the meantime… FFTWoL has an extremely calming effect about 4 hours in… I’m not sure if it is lack of sleep or because my mind is becoming numb to the turns combined with the music or if it is just a nice track for my mind to wear into deep troughs with minor chocobo chirps as they “heal” me and my merry band of misfits to the tune of… final fantasy-sy music scores. By they way, I didn’t like Final Fantasy VII too much and did think the rest were rather boring at times. But they take the right mindset (patience, time invested, acceptance of cutscenes and slow battle, etc.), something which I don’t always have. I did play through one and two out here again on PSP, but the experience was still enjoyable. Of course, comparing these or any other previous titles to FFXIII is a little bit unfair, considering what it is supposed to bring to the table.
January 16th, 2009
I hear you my man… anyways… with your job… how do you get the time to play games and get online??
January 16th, 2009
I think you need to cut down on the sugar dwh. 8===o hehe
January 16th, 2009
harry did you just draw a penis??
mine is bigger…
3====================D
January 17th, 2009
darkwhitehair,
Things have calmed down a lot (we “won” here) so it isn’t nearly as busy as last year.
January 17th, 2009
do I sense a tinge of sarcasm there carl??? are you not Pro America?? then dont criticise our PREZ!!!
how many days till he’s out??
anyways… stay safe my evil twin…
January 17th, 2009
wow, you are really trying dwh, but I know your wily ways my friend… (queue Star Trek kirk vs. alien fight music… dadadadadedaDUHDUH!… dadadadadedaDUHDUH!… anybody remember one of the first ones where he was like holding a piece of styrofoam cave wall that looked like a…) still wish I had alcohol… drink up friend.
January 17th, 2009
Im not a nerd… so Im not familiar with your CULT shit Trekkie stuff man… STAR WARS DE BEST MAN!!! YOU DONT KNOW SHIT MAN!!!
January 17th, 2009
All caps dwh, how kev of you *looks down in disappointment eyeing closet door where evil monkey was shut in just the night before*
January 17th, 2009
dont toy with me evil twin…
: —- P
January 17th, 2009
btw, I agree, Star Wars is the best overall, but Star Trek has funnier music. Faces. Really. So adolescent… next thing you know you’ll try and put penises on here or something…