One of the premier gaming industry analysts, Michael Pachter, went on record today about the possibility of future price cuts. He feels that there will not be another PlayStation 3 price drop until early 2008, strategically placed before the release of GTA IV and Metal Gear Solid 4.
However, Pachter does feel a PS2 price cut will be announce prior to Christmas. In a note to his Wedbush Morgan investors he stated, “Any hardware price reduction could serve as a catalyst for sales growth later in the year,” possibly outlining Sony’s business plan or outlook for the coming fiscal year.
We all know that the PS2 isn’t going anywhere and with the growth of publisher support in 2007, investor fears could dwindle. In a closing comment he wrote:
"Should industry sales continue to be strong, we think that investors concerns about a secular shift away from video games will subside, and we expect the US publisher stocks to continue to appreciate… It may take until after the holidays when concerns about the 'stalled' cycle are fully alleviated, and we expect volatility for video game stocks through the year, though with an upward bias.”
So it looks like a PS2 price cut in 2007 and possibly a new SKU or price cut for the PS3 come first quarter of 2008, according to the analyst who correctly predicted the GTA IV delay. Coupled with the added support of developers, 2008 could be exactly what gaming fans have been wanting.