Pachter: PS3 price drop in April, 360 to follow, Wii staying put
Video game market prognosticator Michael Pachter of Wedbush Morgan sees a PS3 price-drop in April -- to the tune of $100. Sound familiar? Pachter also believes that the Xbox 360 will be reduced in price shortly thereafter, while the Wii will likely keep its $249 price point for the duration of 2009.
In an email advisement reported on by GameDaily, Pachter said that Wedbush Morgan expects "sales of [PS3] will once again begin to grow" following the spring price reduction, something that the firm believes Microsoft will counter "with the feature-laden Pro model likely [coming] down in price to $249 at or before this year's E3 show in June."
As for the Wii, Pachter doesn't see Nintendo marking its console down unless it "sees signs that demand is slowing, which means a price cut may not happen until late in the year, if at all." We'll see your year, Pachter, and raise you at least nine more months.
In an email advisement reported on by GameDaily, Pachter said that Wedbush Morgan expects "sales of [PS3] will once again begin to grow" following the spring price reduction, something that the firm believes Microsoft will counter "with the feature-laden Pro model likely [coming] down in price to $249 at or before this year's E3 show in June."
As for the Wii, Pachter doesn't see Nintendo marking its console down unless it "sees signs that demand is slowing, which means a price cut may not happen until late in the year, if at all." We'll see your year, Pachter, and raise you at least nine more months.
Reader Comments (Page 1 of 2)
Premature ejaculation man @ Jan 12th 2009 7:37PM
Assuming this is true, I wonder how consumers will react to the price drops (as in which to go for)
Hyams @ Jan 12th 2009 8:06PM
Well, the 360 is already at a very good mass market price, so another price cut would have a limited effect, I'd imagine. Most people who want a 360 should already be able to afford one, so a price cut shouldn't open up the market a whole lot more.
A PS3 price cut would be far more effective, as it'd bring it down into many people's price range.
gotFrosty @ Jan 12th 2009 9:34PM
This is how it will pan out: I have a 360 as of right now, when PS3 drops, I will have both.
DiggyStyle @ Jan 13th 2009 10:08AM
Same here frosty. I have the HDTV and a 360, and if the price drops on a PS3, I will have a sweet bluray player and another B.A.N.G. console.
(Bad Ass Next Gen) - yeah, I though that was cool too. You can use that Joystiq...
tmontana213 @ Jan 12th 2009 7:40PM
If this keeps going on the consoles will eventually be free! (A man can dream can't he...)
Nebinator @ Jan 12th 2009 7:54PM
Dream on...
Levi @ Jan 12th 2009 9:39PM
with a hat like that... yes,... you can dream.
GundamWingEW @ Jan 12th 2009 7:40PM
Depending on the time that elapses between the 2 price drops it may or may not lead to a huge increase in sales for the ps3.
If it does happen I wouldn't be surprised to see MS drop the price on the 360 immediately....like a month or 2 later?
At $299 though that would definitely put sony at a good price point. But wouldn't sony be losing money then?
Ivory Tower of HighHorseness @ Jan 12th 2009 8:01PM
*anime-like face crunching spin punch reaction
you mentioned the PS3... without bashing it!?
Hyams @ Jan 12th 2009 8:02PM
I can't image anyway Sony could not lose an obscene ammount of money with a $100 price cut. They should begin to break even on console costs soon, and they'd have to idiots to give it a $100 straight away and so throw away their chance of making money.
That's why I don't think it'll happen, and if it does happen, it'll be a $50 price cut, not a $100 one.
finnith @ Jan 12th 2009 8:19PM
If I remember correctly, it's Nintendo who is the only console manufacturer who makes a profit on every console (i.e. Wii) they sell. Even if Sony doesn't lower the price, they would still be losing money.
If I don't remember correctly, mark me down.
GundamWingEW @ Jan 12th 2009 9:13PM
MS is making a profit on the 360 if I remember correctly...they announced that a while ago I think. So it's sony who's losing money now.
Levi @ Jan 12th 2009 9:44PM
It seems that way - that Sony would lose money on them at that point. We know that it costs significantly less to manufacture each system now than at release, but the price hasn't dropped that much in the past two years. So my theory is that they are making a decent buck off of each system at this point, especially the $500 model, but they are still under as far as total cost vs profit. They are continuing to sell them at these higher prices, foregoing a price drop, to recoup money spent thus far. Once they reach profitability (not on each unit, but on the PS3 as a whole), then they will announce a price cut.
But that's just my theory. Anything goes I suppose.
PsyKodeLicReLic @ Jan 12th 2009 7:40PM
to bad i already have all three.
VelociRapido @ Jan 12th 2009 7:46PM
So do a lot of other people, so what?
Levi @ Jan 12th 2009 9:40PM
too bad you use the word "to" incorrectly
Markez (Anti-Panda Death Murder Squadron) @ Jan 12th 2009 10:07PM
Big whoop wanna fight about it?
Travis @ Jan 13th 2009 6:33AM
no kidding
Moptimus Slime (Leader of the Ryan Scott Defense Force, Fatass come back.You can blaim it all on me. Awurr? Maburr) @ Jan 12th 2009 7:41PM
I don't really think Microsoft can go any lower in price without announcing a new console. They've had what, 5 price cuts?
GundamWingEW @ Jan 12th 2009 7:45PM
What happened to fatass? Did he get banned or something? Or just voluntary left?
And you may just break the record for longest username ever...
Moptimus Slime (Leader of the Ryan Scott Defense Force, Fatass come back.You can blaim it all on me. Awurr? Maburr) @ Jan 12th 2009 7:46PM
no, he threatened to leave but decided not to. I'll get around to removing that sooner or later
angryk0nG @ Jan 12th 2009 8:02PM
Microsoft and Sony have BOTH lowered their consoles by the same $ amount (100)
Sony did it once 1x$100 over 2 years by reconfiguring the sku(re taking out the card reader,usb ports and PS2 BC)
Microsoft did 2x$50 OVER 3 years for the SAME console
Ivory Tower of HighHorseness @ Jan 12th 2009 8:03PM
I overreacted like a bitch but came back to my senses. You'll see me trollan a lot more, though.
GundamWingEW @ Jan 12th 2009 8:42PM
fatass is such a drama queen...
But he's a nintendo fanboy so I don't mind it as much.
VelociRapido @ Jan 12th 2009 7:44PM
Why wait? Just do it now!
j.howlett @ Jan 12th 2009 7:58PM
because it's just some guy who gets paid to guess, he doesn't work for sony
Hyams @ Jan 12th 2009 8:12PM
I wish I got paid to comment on this sort of shit. =(
gamer4250 @ Jan 12th 2009 7:55PM
Um. If Microsoft were to drop the 360 price any lower, there would be no reason to buy a Wii at all unless you're old or something. Or whatever else the people that buy the thing and then just leave it sitting forever that never play games otherwise are.
Had to add the last part because I have a 360, yet my Wii is just sitting there doing nothing forever :P
(Except for Ōkami. Ōkami is godly.(tee hee) Too bad it's only a port.)
Hyams @ Jan 12th 2009 8:03PM
Well, 360s are already cheaper than the Wii...
The Wii's selling point isn't its price (although that helps obviously). There's so much demand for Wiis, that I'm convinced Nintendo could actually increase the price and it'd still outsell both the 360 and PS3 by a large margin.
gamer4250 @ Jan 12th 2009 8:07PM
Hyams: The full featured 360 at the same price at the Wii would definitely make a difference. I can guarantee that some people buy a Wii just because it is cheaper, and they don't realise what they're getting themselves into.
Hyams @ Jan 12th 2009 8:11PM
I find that hard to believe. If you're just going to go out and buy the cheapest console without doing any research, you'd buy the 360 Arcade, not a Wii.
The reason the Wii is selling so well is because everyone wants one, not because of its low price. It's the latest cool thing to own. Even all those pesky non-gamers want one, and they want one bad.
Moptimus Slime (Leader of the Ryan Scott Defense Force, A Wurr? My Burr) @ Jan 12th 2009 8:13PM
"Even all those pesky non-gamers"
Oi! Lets not drag this article back to 2006, 'kay?
Hyams @ Jan 12th 2009 8:15PM
PS3 HAZ NO GAMES!
360 ARE SHOOTERBOX AND RROD!
Mr Khan @ Jan 12th 2009 9:15PM
That's the point of Wii. People who wouldn't touch videogames otherwise buy Wii, and that's the reason why the 360 simply can't outdistance them
Now, Microsoft could tap into the old PS2 base with more quality family content and party games, as well as the lower price, but Wii is off in it's own league
Levi @ Jan 12th 2009 9:49PM
yeahhh... if anyone tries to deny the fact that the Wii is a non-gamer console, just watch ANY of Nintendo's keynotes since the Wii's release. All they talk about, Reggie especially, is how they got people who never play games to play the Wii. So if you don't think it's mostly a non-gamer console, go tell that to Nintendo..
skyrous @ Jan 12th 2009 11:16PM
The old PS2 base are now the Wii owners. in previous generations the hard core crowd would pick their favorite console and after a couple of years a console would come out on top and the casual audience would start to to flock to the winning console as the prices came down and that system would sell the big numbers. For the last two generations that winner was the playstation.
This time around Nintendo turned the paradigm on its head by going directly for the casual audience and collecting up those millions of casual customers before Sony or Microsoft figured out what was going on. Microsoft can do all the family games they want Nintendo has already sold a Wii to anyone interested in a family game.
Sony and microsoft are fighting for second place now. Nintendo's gonna sell 50 million Wii's by mid year, and third parties are gonna make it a priority to cater to a market 50 million strong.
waves @ Jan 12th 2009 7:58PM
$199 is a pretty sweet price point. Instead of going lower they could add a 20gig drive to the arcade model and take $50 off the other two models.
tmmoore_nc @ Jan 12th 2009 7:59PM
I see a PS3 price cut happening, but no way does the 360 move in price. It would make their 60gb HDD bundle look meaningless. But I am calling for a bigger 360 HDD sometime this year.
VelociRapido @ Jan 13th 2009 1:10AM
I think you might be right about the HDD. I bought mine on clearance at Target and more stores seem to be discounting them more often. They got to be clearing shelf space for something.
Shangheli @ Jan 12th 2009 8:03PM
I might put off buying one now, was gonna use some christmas money but no point if its gonna be cheaper soon.
Alien Lord @ Jan 12th 2009 8:13PM
Shangheli is falling right into our trap, maw ha ha ha.
Hyams @ Jan 12th 2009 8:18PM
IT'S A TRAP!
Roosifur @ Jan 12th 2009 8:05PM
@Gundam: The ps3 can handle the price drop without killing sony. Everyone always talks about how ps3 is behind xbox in the 2008 gaming market but look at the figures.
Wii 8,001,000
Hyams @ Jan 12th 2009 8:09PM
Sony is actually bleeding money at an alarming rate. You're right - they won't die - but if they don't stem the tide soon, they'll risk fainting.
Roosifur @ Jan 12th 2009 8:06PM
Xbox 360 3,295,400
PlayStation 3 2,818,900
PlayStation 2 2,092,300
PlayStation Portable 2.81 million
Sony doesn't mind having a slightly 'overpriced' current gen console because people are still going to buy it and its 10 year old system is still making a lot of money. They have quite a bit to fall back on and was in their business plan from day one. They knew they would lose alot of money per console initially; but that it would steadily ramp up.
Sure you can buy a 200 or 300 dollar X360 (Which I have and love) but if you want the 'full' feature set it is NO cheaper then a ps3.
Levi @ Jan 12th 2009 9:53PM
you sir, bring rational back into the war. I think I like you.
Vcize @ Jan 13th 2009 10:33AM
Well, if you want the full featureset and are one of those stupid consumers that pay full MSRP for everything then it's the same price as a PS3.
But if you have any shred of savvy shopping in you, you can add a hard drive and wifi to an arcade for under 50 bucks (wireless bridge for the wifi, 20gb HD bundle from MS for the hard drive) and still come out around $250 for the whole she-bang.
Then again, if you're one of those stupid consumers that pays full price for everything, you'd have to tack on another 80 bucks or so to the PS3 cost anyway to get you one of those fancy Monster HDMI cables that "improve visual clarity".
Lord Negatron @ Jan 13th 2009 12:57PM
Im with Vcize...
In terms of pricing, if someone does not have either 360/Ps3 by now, i doubt said person is going to buy a stable of games with initial purchase.
That being said,larger HDD's are not a necessity, depending on your needs. I still have a 20gig with only 6.5gig left. Reason for that is, downloading NBA 2K9 to play from the HDD. When i trade in a game that with no intention of repurchasing, i delete its files(achievements stay).
I was never one to use XBL for purchasing anything but gamper pics/themes, movies and video. My first arcade purchase was Castle Crashers. So if your are the DL type, yes then a 60-120 is for you. Other than that, Ive played many of the great titles, traded them in and function like anyone else with out all the trimmings.
I also forgot to add I am somewhat picky in my purchases. Some people give games(Vampire Rain, Haze)a chance, by flat out buying them, rather than waiting or renting. Some just love all around gaming, and buy whatever suits them. Yeah, they too would a large HDD.
nick @ Jan 12th 2009 8:07PM
The only console company that HAS to have a price cut this year is Sony.
Mr Khan @ Jan 12th 2009 9:18PM
Sales were in a good place last summer (which was, i believe, at the current price), they'll be able to stay afloat at this price in the sales race, and actually profit for a while, putting money in the war chest for more aggressive actions further down the line. Although it might be too late, but i think they'll go for money now over the possibility of marketshare later