Wedbush analyst Michael Pachter: Sony is “overly ambitious”

There are mixed criticisms regarding Sony‘s decision to create the hefty (and pricey) PS3. Wedbush Morgan analyst Michael Pachter believes that Sony’s strategy of incorporating the Blu-ray format and a microprocessor that will stand up to ten more years of technological advances “may have been overly ambitious.”

Pachter gave his comments after NPD‘s numbers and figures for April were revealed. He explains that “consumers are balking at paying the prices asked for PS3s.”

“Sony has to make a choice between subsidising the Blu-ray and cell costs, or waiting until their production costs drop.” says Pachter. With that said, the Wedbush analyst believes that Sony will not break tradition and just keep selling units below the manufacturing costs.

It’s not as bad as it seems though – if the strategy worked for the PS2, the same could happen to their current console when its library expands and gamers get the big titles that they’re waiting for.

Pachter’s guess is that Sony may announce a PS3 price cut in July. It’s very likely, given the poor sales recently; but with much anticipated titles like DMC 4 and MGS 4, Sony will hopefully get the boost they’re expecting.

There are mixed criticisms regarding Sony‘s decision to create the hefty (and pricey) PS3. Wedbush Morgan analyst Michael Pachter believes that Sony’s strategy of incorporating the Blu-ray format and a microprocessor that will stand up to ten more years of technological advances “may have been overly ambitious.”

Pachter gave his comments after NPD‘s numbers and figures for April were revealed. He explains that “consumers are balking at paying the prices asked for PS3s.”

“Sony has to make a choice between subsidising the Blu-ray and cell costs, or waiting until their production costs drop.” says Pachter. With that said, the Wedbush analyst believes that Sony will not break tradition and just keep selling units below the manufacturing costs.

It’s not as bad as it seems though – if the strategy worked for the PS2, the same could happen to their current console when its library expands and gamers get the big titles that they’re waiting for.

Pachter’s guess is that Sony may announce a PS3 price cut in July. It’s very likely, given the poor sales recently; but with much anticipated titles like DMC 4 and MGS 4, Sony will hopefully get the boost they’re expecting.