Pachter, Pidgeon on the PSP price cut

It’s a good time for gamers to get PSPs. Price cuts have sent the Sony handhelds to more affordable prices. Upcoming and recent releases are also bolstering its current title lineup. And of course, homebrew’s still going strong.

Speaking to GamesIndustry.biz, Wedbush Morgan’s Michael Pachter attributed Sony’s recent decision to slash the price to two things: cost of production and sales volumes. “They will continue to lower price as they gain economies of scale, but it’s not likely that the company will price below its marginal cost of production to move a few more units,” he said.

“In the case of the PSP, their manufacturing costs have probably dropped to below the USD 169 level,” said Pachter. “With VAT and other incremental costs, they are pricing close to parity in the US, UK and Europe.”

IDC analyst Billy Pidgeon also noted that the PSP price cuts could also have a positive effect on Sony’s next gen PS3 video games console. “Stronger PSP sales will help Sony move PS3’s down the line,” he offered, “But I think a larger installed base of PS3 will have a more important impact on increasing PSP penetration.”

Via GamesIndustry

It’s a good time for gamers to get PSPs. Price cuts have sent the Sony handhelds to more affordable prices. Upcoming and recent releases are also bolstering its current title lineup. And of course, homebrew’s still going strong.

Speaking to GamesIndustry.biz, Wedbush Morgan’s Michael Pachter attributed Sony’s recent decision to slash the price to two things: cost of production and sales volumes. “They will continue to lower price as they gain economies of scale, but it’s not likely that the company will price below its marginal cost of production to move a few more units,” he said.

“In the case of the PSP, their manufacturing costs have probably dropped to below the USD 169 level,” said Pachter. “With VAT and other incremental costs, they are pricing close to parity in the US, UK and Europe.”

IDC analyst Billy Pidgeon also noted that the PSP price cuts could also have a positive effect on Sony’s next gen PS3 video games console. “Stronger PSP sales will help Sony move PS3’s down the line,” he offered, “But I think a larger installed base of PS3 will have a more important impact on increasing PSP penetration.”

Via GamesIndustry