Pachter: PS3 Price Drop May Force Microsoft To Act
Now that the PS3 Slim is a reality and the long-awaited price drop has arrived along with it, it'll be interesting to see what kind of impact this has on consumers and the market as a whole.
We heard what EEDAR's Jesse Divnich had to say on the matter, and now, it's time for Wedbush Morgan Securities analyst Michael Pachter to chime in with his thoughts. As he told IndustryGamers, the real question is whether or not we'll see a "year-over-year lift." Said Pachter:
"The real question is do we get a year-over-year lift or not? We'll clearly get a sales boost over the last few months, but the acid test is whether monthly sales go back to 200,000 plus. I think that they will, and I think that this is good for the industry. The next question is whether the sales increase from PS3 is purely additive or whether it comes at Microsoft's expense. If Microsoft sees sales go down year-over-year, they may have to cut themselves (likely by $50) before too long. I think that they stay at $299 for a while, perhaps till November, and only cut if they see Sony's sales at 2x the 360 sales level."
We think it might be the latter; video game consumers are a savvy group, as history has proven, and when a logical, rational-minded individual sets out to buy a new game console and sits down to compare the PS3 and 360, the combination of the new price, Blu-Ray, better exclusives, better reliability ratings, and free Network ought to steer them towards Sony's machine. And if that happens, that clearly indicates a lost sale for Microsoft. But we could be wrong. Who knows what might happen?
8/19/2009 Ben Dutka