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Pachter: If they keep going down, down, you'll get your price cut -- even from Sony

Posted Jul 13, 2009 at 12:56PM EST by Mabie A.

Listed in: PS3, Wii, Xbox 360 Tags: Michael Pachter, Microsoft, Nintendo, NPD, Sony
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consoles - Image 1 


If the sales numbers keep going down, then it just might be more likely that the console manufacturers will introduce price cuts for their systems before October 1st. Sony will join in on the fray this time. At least that's what Wedbush Morgan analyst, Michael Pachter, is saying.

According to his analysis, the North American sales for Wii, Xbox 360 and PS3 will reflect a year-on-year decline of 43% for the month of June. And with this number, Sony, Nintendo and Microsoft will ultimately be forced to slash off prices from their consoles to reverse the downward sales trends.

We think that the console manufacturers will therefore be forced to consider a price cut before year-end ,with Sony cutting the PS3's price by October 1.


Further, we do not think that Nintendo's hardware forecast figures are achievable without a price cut, and we expect one around the same time as the PS3 price cut.


It is likely both manufacturers will cut by US$ 50, with Sony making up any lack of increased demand with a software bundle.


We expect Microsoft to follow suit, giving us confidence that US software sales will grow later in the year, notwithstanding negative sales in the early part of the year.


We'll know soon enough if the sales figures really do spell out doomsday for the big three. The NPD result for the month of June is set to be released this Thursday.



More stats, figures, analysis:


Via VG247



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Comments 


 
# ...danielakadanny 2009-07-13 14:07
only if what he said would come true cause most of us r still struggling cause of this economy!

Reply
 

 
# ads!papakep 2009-07-13 14:49
these ads are annoying and creepy. that evony girl is annoying and so are those girl gamer ads. qj, can you get different, less dumb, ads?

Reply
 

 
# ...cory1492 2009-07-13 16:21
Considering I picked up a 360 arcade for $150CAD a couple weeks back for a friend (looked like bestbuy and futureshop were trying to clear their retail channel of falcons up here) it's a no-brainer why PS3 sales slip - especially where a large portion of most anticipated and previously exclusive titles are moving to the 360 platform if not dual released.



Damn I hate to see the shoddily made 360 win in this way :(

Reply
 

 
# yeahrollypoly 2009-07-13 17:34
i hate to see any console win this way... but it's what wins.



i blame the PSX for reducing gaming to the point where the cheapest console with the most games wins...

Reply
 

 
# Yeah...Farnesworth 2009-07-14 03:17
I have real problems with the 360. the technical issues are rediculous and paying twice to play online is a joke, but thats not what people see when they go to the store. They go to the store, see a wall of games for each side, both look almost exactly the same. Possibly one or two timed exclusives that they want. So they compare features and think, yep. $100 bucks savings. Possibly $100s if you buy online.



It's a circle of failure. I won't lower console prices because I want to make a profit. I can't make a profit because nobody is buying my brands games. Nobody is buying my games because my console is too expensive.



So, if Sony's breaking even:

http://gizmodo.com/344141/ps3-production-cost-down-50-sony-finally-breaking-even



Whats the hold up?



Historically they have gained an advantage by losing money on the console to win the games war. I can't help but wonder if it's the PSP failure haunting Sony. The, "I'm selling you MEDIA, not games" philosophy that filled the PSP games rack with UMD movies. The philosophy that draws them away from *just* making good games and instead leads them toward multimedia centers, avatar simulators and very pretty news readers.



/I own both, but I grew up with a Genesis with no hope of having an SNES, so I suppose it's the same deal with kids of this generation.

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