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Analyst Pachter Alters PlayStation 3 Price Cut Prediction

It wasn't long ago when Wedbush Morgan analyst Michael Pachter predicted we'd see a price drop for the PlayStation 3 in April. But as it turns out, that was kinda like his "April Fool's joke," even though he does still expect a price cut later this year.

According to EndSights, Pachter believes the $299 price point is the "sweet spot" for Sony's machine, even though Sony may not be able to afford to drop the price by April. Instead, he sees the drop coming some time between June and September, which most consumers will interpret as "better late than never." Said Pachter:

"They probably won’t really cut in April (that was my early April Fool’s joke), but they should seriously consider making a move as soon as they can afford it. My guess is that they’ll be able to afford a cut by October, and will cut earlier than that in anticipation of their cost of production coming down. I picked April as the beginning of the fiscal year, but it could be June (E3), September (TGS), holiday, or not at all. If they don’t cut, they had better prepare themselves to run a distant third in sales once again."

At this point, it seems like the last piece of the puzzle could be this price drop. The software lineup for 2009 is great, Blu-Ray is coming into its own, more and more people are going online via the PSN, and now, it's just a matter of the price of admission.  Consumers have been clamoring for a cut for quite a while now, and although PS3 sales were up 40% in 2008, the numbers could really skyrocket if Sony made the system more accessible.  At least, that's how we see it.

1/16/2009 Ben Dutka

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Comments (42 posts)

Diggity Dan
Friday, January 16, 2009 @ 11:20:22 AM
Reply

Hmmm....a joke? Maybe this is just a whack-o theory; but why would an industry analyst joke about a prediction and hurt his own reputation? Do you think Sony maybe politely asked him to STFU or at least recant his statement, so as to not hurt current sales more? I still am convinced the price cut is coming soon, this is just posturing.

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Deleted User
Friday, January 16, 2009 @ 4:49:02 PM

Sony for sure called. Im sure it wasn't a happy conversation.

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MetalHead09
Saturday, January 17, 2009 @ 9:38:28 AM

i cant stand listening to that guy. he has a really bad attitude and is full of himself i think.

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Vivi_Gamer
Friday, January 16, 2009 @ 11:25:24 AM
Reply

what a dik.

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Zorigo
Friday, January 16, 2009 @ 12:34:38 PM

god you lot are so angry. a ps3 price cut won't affect you. you've already got a ps3 you penis.

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www
Friday, January 16, 2009 @ 2:50:16 PM

Dream,relax,wat's happening.....u need a chill pill,is like u're fired up everytime.

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Vivi_Gamer
Friday, January 16, 2009 @ 5:15:35 PM

I hate April Fools day, someone making an April Fools day outer that time zone just utterly fails! one days bad enough.

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vicious54
Saturday, January 17, 2009 @ 4:25:00 PM

Pachter is an idiot.

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Scarecrow
Friday, January 16, 2009 @ 11:44:38 AM
Reply

He should get fired
Bastard

I wish I could joke around with my job.

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www
Friday, January 16, 2009 @ 2:52:00 PM

Hey that's somebody's dad u're talking about,watch ur words he's got kids to look after.

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karneli lll
Friday, January 16, 2009 @ 3:57:08 PM

So what if he's got kids? He was totally unprofessional, should we keep quiet when the other ' game journalists ' throw their immaturity around because they have kids?

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www
Friday, January 16, 2009 @ 6:44:15 PM

Anyway,Pachter can't hear you,he's got sh** to do,too busy to read garbage online.

Last edited by www on 1/16/2009 6:46:50 PM

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englishgolfer
Friday, January 16, 2009 @ 11:50:35 AM
Reply

well that's all the bases covered! when the price cut comes he'll go out and say "told you so back in january".

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Nynja
Friday, January 16, 2009 @ 12:00:43 PM
Reply

All these price cut predictions or claims only hurts PS3 sales in the short term. People hear rumors of a price cut then hold off on buying the system anticipating it will happen soon.

Probably why MS claims Sony will have a price drop in the first quarter of the year - in anticipation of the Killzone 2 release.

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CH1N00K
Friday, January 16, 2009 @ 1:56:19 PM

Does it really hurt that much though? I never heard of this guy until PSX started reporting on his comments. I'm sure his comments are reaching some people but if you were to ask the average person buying a system if they heard what Michael Pachter said, they'll probably give you a blank stare. The general public as a rule have been a little ignorant as to what the industry experts are saying. Take a look at how many people don't know that Xbox 360 has a 3 year warranty on them now.

And by the look of comments of "industry experts" lately, the general public aren't the only ingorant people out there.

I don't think Pachter is influencing the sale of PS3 by much...

Last edited by CH1N00K on 1/16/2009 1:58:59 PM

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dfm078
Friday, January 16, 2009 @ 8:55:54 PM

I dont know if people hear this guy, but it's a fact that some people will hold off. I fully agree with Nynja

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Fane1024
Saturday, January 17, 2009 @ 4:20:27 PM

BTW the three-year warranty only applies to the RROD AFAIK.

(Wow, two internet abbreviations; I feel so hip)

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Tim
Friday, January 16, 2009 @ 12:18:28 PM
Reply

Maybe they figure they'll get the Killzone 2 hardware sales at the full price before cutting it. Which could still leave the door open for spring. Might be a good headline-grabbing segue between K2 and Uncharted 2, coming out later in the year.

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Sir Shak
Friday, January 16, 2009 @ 12:45:09 PM
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this guy is a joke. he recently said on gt.tv that there are about 1 million people playing on psn.

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fundando
Friday, January 16, 2009 @ 1:59:06 PM

maybe this guy is realizing that he is an idiot who has no clue what he is talking about

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Phoelix
Friday, January 16, 2009 @ 2:40:47 PM

Technically, he is correct.

He just forgot to add the other few million.

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Fane1024
Saturday, January 17, 2009 @ 4:21:51 PM

...playing Warhawk on PSN.

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ps92117
Friday, January 16, 2009 @ 12:49:52 PM
Reply

this guy does not have a good prediction record, but I don't think it takes a genius to figure out that the price will come down.All I care bout is marketing, for now they should completely foucus on kz2 and that will get there sales up. Oh what do you guys think about sony making free realm compete with home?

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FLYING_APE
Friday, January 16, 2009 @ 1:56:57 PM
Reply

When sony lower their production cost they will lower price. Simple as.

@ps92117 yes sony marketing SUCKS A** but calm the F*** down. Your like one of those crazy fanboys that support there console like it's a football team.

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CH1N00K
Friday, January 16, 2009 @ 2:20:55 PM

I actually somewhat agree with @ps92117, we all know that Sony's marketing for the PS3 is pretty weak. KZ2 is getting great reviews already, why not market it? Sony's in last place in the console war right now, they have to do something to catch up.

I don't necessarily agree with only marketing KZ2 though. Since the biggest misconception out there about the PS3 seems to be a lack of games, why doesn't Sony do ads showing that this has changed, or do some multi plat ads like M$ does. I've seen lots of ads from microsoft that are showing off games that are on all the systems, They just don't advertise the fact.

Take the situation with Final Fantasy XIII. Sure this time around it's Multi Plat, but for the previous 2 console generations FF has been known mostly as a Sony game. If Sony were to get a jump on M$ for getting the ads out for this game, they could sell more copies just by name association alone, even though it will be available on both. If they did these ads before the game released, some people would even be inclined to go out and buy a PS3 in anticipation. Not everyone would fall for this mind you, but some would.

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WorldEndsWithMe
Friday, January 16, 2009 @ 3:32:28 PM

Gotta support the team.

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ps92117
Friday, January 16, 2009 @ 7:22:58 PM

wow, you thought I was angry when I wrote that comment, perhaps i should use words like "What would make me most happy and jolly" insted of "all I care about", though I think saying f*** s*** makes you sound more angry. well anyways, why I said to only focus on kz2 is because it is there only exclusive title coming soon. Oh an yeah go team sony,lol.

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Fane1024
Saturday, January 17, 2009 @ 4:25:42 PM

@ World

LOL Are you wearing face paint?

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Alienange
Friday, January 16, 2009 @ 1:57:06 PM
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April Fools ! in january ... haha huuuh... Pachter's a boob.

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friendlycarl
Friday, January 16, 2009 @ 2:11:26 PM
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Too many people just don't see the PS3 as a superior product. Price becomes the #1 selling point despite all else. Sony needs to take on a whole new marketing plan similar to the Mac vs. PC commercials. Pointing out the differences between the Xbox and the PS3 directly would sway a lot of uninformed parents. Specifically, the value of a blu-ray, Microsoft's online fees, and overly priced peripherals are some valuable points to consider in the long run. Seriously, attack ads against Microsoft have been known to change a nation. This is your call of duty, Sony.

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Phoelix
Friday, January 16, 2009 @ 2:43:46 PM

You're right.

I think Sony's problem is that their culture is focused on honor. Hirai-san would probably sell the PS3 to Microsoft before he'd release a product that he deemed to be inferior.

Clearly, the rest of the Japanese feel the same way; that's why the PS3 owns Japan (except the Wii). Americans, on the other hand, really aren't as concerned about quality. They just want a cheap console.

As soon as Sony picks up on this and starts to market the PS3 as a cheap console and not a beastly entertainment machine, Sony should sell more.

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Deleted User
Friday, January 16, 2009 @ 5:00:17 PM

You guys are ridiculous. Have any of you 2 ever been to Japan? You guys have any idea what pride even is?

Surely you know of the tariffs and the restrictions on imports entering Japan. Americans are NOT cheap. Maybe you could consider yourself and all of us cheap. But I for one am not that ignorant. If it delivers for the price Americans will pay it. You really think Sony cares about what the Japanese think first of their system? With its IBM and NVIDAI parts in it. More PS2s are sold here in 2 weeks then ALL the gaming systems (handheld included) combined in Japan for a month.

Stop being blind.

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karneli lll
Friday, January 16, 2009 @ 6:10:51 PM

Since when did honor become a problem? Joshua is right,you chaps are blind

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PhilipJWitow
Friday, January 16, 2009 @ 7:49:34 PM

No offence - but I'd have to agree with Phoelix, though worded differently.

I think for the most part people do just buy the cheapest game console because they're cheap or just want something for their kid and don't really care about the quality.

Completely based on my own opinion, but I do believe the Japanese are bit more informed and are more willing to spend money on quality than on something to just amuse the kids with.

Who knows, it could just be a brand thing (Sony > Microsoft in Japan?)

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AntDC
Friday, January 16, 2009 @ 10:51:57 PM

Joshua, you've kind of proved Phoelix's point when you said that "More ps2s are sold..." because PS2 is in fact the cheapest console, and as Phoelix was saying, Americans tend to buy the cheaper console.

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www
Friday, January 16, 2009 @ 2:59:38 PM
Reply

HAHAHAHA! Well i wasn't fooled though,i knew from the start a cut wasn't possible by April,even if it was imminent,i predicted a price drop to about $350/$320 before the $299 in Jun-Aug.

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WorldEndsWithMe
Friday, January 16, 2009 @ 3:36:12 PM
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I predict Pachter gets "let go." He is obviously covering his tracks. I know a poorly covered screwup when I see it cuz I've learned to cover my tracks well.

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Gone
Friday, January 16, 2009 @ 4:13:03 PM
Reply

I never trusted this guy in the first place. He couldn't predict a fart.
(R.I.P Circuit City I will miss your 2 for $30 game specials)

Last edited by Gone on 1/16/2009 4:14:45 PM

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Aftab
Friday, January 16, 2009 @ 4:43:38 PM

Lol!!!Sometimes those just slip out, I suppose.

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bamf
Friday, January 16, 2009 @ 9:54:39 PM
Reply

Patcher gets so much wrong inwhich he admits to on GameTrailers 'The Bonus Round' It must be good to get paid to guess.
On the 'Bonus Round' With a laugh and a smile Patcher continuely makes comments about how the GT veiwers accuse him of not knowing anything about games, but there is sarcasm in his voice as if he's saying "I know more than you"

Pather recently said on the Bonus Round that PSN is 2-3 yrs behind where Live was a year ago. The others on the panel said that the 360 had the best games line-up in 2008.
Patcher is such a fool.

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AntDC
Friday, January 16, 2009 @ 10:49:19 PM
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"But as it turns out, that was kinda like his "April Fool's joke,""

His excuse for his moment of stupidity I guess...

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ArnoldK PSXE [Administrator]
Friday, January 16, 2009 @ 10:55:11 PM
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I concur with the sentiments that Sony asked him to retract the statements. His quotes were taken COMPLETELY out of context and slapped on the front page of Yahoo.com for hours as "PLAYSTATION 3 PRICE CUT!" And when you open the link it says "...according to analyst."

What kind of dumb shit is that? Seriously. Whoever from Yahoo is responsible for that is a moron.

Last edited by ArnoldK PSXE on 1/16/2009 10:56:05 PM

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