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Pachter Says $499 PS3 Is 'Here To Stay'

jmanalang
47 Comments

Posted July 16, 2007 - By jmanalang

While the price of Sony’s PS3 maybe experiencing more ups and downs than a rollercoaster ride, Wedbush Morgan analyst Michael Pachter thinks that Sony will eventually finalize the $499.99 price. In part of his E3 summary, Pachter said that the $499.99 PS3 will be the permanent price once the 60gb models are completely sold out.

If you haven’t heard, Sony’s $100 price-cut appeared to be temporary when Sony president Kaz Hirai announced that the 60gb PS3 will be ‘no longer in production.’ The upcoming 80gb PS3 bundled with Motorstorm will be priced $599.99.

Despite Sony’s plan, Pachter expects the 80gb PS3 will eventually have the same price tag as the 60gb PS3 in the near future. He said:

"In our view, the Sony entry level price of $499 is here to stay. We believe that there are presently 2-3 million 60gb PS3s produced and not yet sold, and expect the entire supply to be diverted to the U.S. to honor the new lower price point. Once these units are sold through, we expect the company to lower the price of its 80gb model to $499 on a standalone basis."

Pachter also commented about Sony’s intent, Microsoft’s plans, Nintendo and how this year’s E3 was a disappointment. Find out more after the jump!

Sony’s temporary price cut may just have been a ‘public stunt’ to lure buyers and was a bit deviant, but Pachter said that Sony’s intentions are not against the buyers. He said:

"Although we think that Sony’s public relations gaffe was unfortunate, we do not believe that the company has ill intent, and we expect the $499 price point to be maintained until next year, when the 80gb model will likely be cut again to $399."

Pachter also thinks that Microsoft will soon be cutting the price of their 360 console. He expected that the Big M would announce a price cut at E3, but it didn’t happen. "The company did not cut the price of its Xbox 360 despite our speculation that Microsoft would feel compelled to do so after Sony’s price cut," Pachter said. He said a price-cut buy Microsoft would be appropriate and he would expect it later this year.

As for Nintendo, he said that their ‘momentum will be difficult to overcome’ and sales of the Wii would remain high in the future. We’ll see how will the Wii Fit into the Wii’s foreseeable success which we’re sure NOA president Reggie Fils Aime is enjoying at the moment.

Speaking of E3, Pachter believes that the ESA ‘made a mistake in downsizing the show.’ He said while previous 60,000 populated E3s were hard to manage; this year was a ‘terrible disappointment.’ Companies have driven off potential consumers and investors by taking away all the spectacles, he said. We concur, Mr. Pachter. Where art thou old E3?

TheFeed only hopes that Sony will decide to keep the $499 PS3 price tag in the future. Sure it’s an expensive machine to make, but only a few are willing to hand over $600 to buy one. Besides, didn’t SCEA president Jack Tretton mention during Sony’s E3 2007 conference that PS3 sales doubled after announcing the $100 reduction in just a few days?

GameDaily: Pachter: $499 PS3 Is 'Here To Stay'

 

Pachter Says $499 PS3 Is 'Here To Stay'
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