When Pachter says “jump”: high price of PS3 killing Sony

Everyone’s favorite analyst, Michael Pachter, has joined the bandwagon calling for Sony to lower the price of the PlayStation 3. Echoing the opinions of CNN, Pachter says that the PS3’s high price is killing Sony. Leave it to Pachter to state the obvious.

Everyone’s favorite analyst, Michael Pachter, has joined the bandwagon calling for Sony to lower the price of the PlayStation 3. Echoing the opinions of CNN, Pachter says that the PS3’s high price is killing Sony.

Leave it to Pachter to state the obvious:

The most important thing for the company to do is to get the PS3 production cost down, and it appears to be making progress on that front.

Sony has historically priced at its production cost (or above), but it has historically been in first place. This generation, the company is a distant third, and is falling behind at a rapid pace.

Lowering the price will cost Sony a lot, but it should generate sufficient future profits from game and Blu-ray movie sales and royalties to offset those losses.

He figures there’s a 40% we’ll see a price cut by the holidays, and only a 5% chance of a cut this April. He also says there’s a 10% chance we won’t see a price cut this year at all. Sony, on the other hand, is busy tending to its financial bleeding. We probably won’t hear major news about the console until things settle down from their restructuring.

• Microsoft: Xbox 360 still better, even if PS3 gets price cut
• PS3 may get a price cut this summer, says Pachter
• SCE: games division least likely to be affected by Sony job cuts

Via CVG