The sales of the 360 and the PS3 are so low right now that they only have two options if they care at all about profit. The first one is to dramatically shift gears and sell at even more of a loss this year to catch up (not suggesting, and it probably won't work).

The best thing that Sony and MS can do for profit is to keep the price high, keep making quality first party games, allowing them to be profitable in a position below market leader.

I said Patcher is useless as an analyst because he talks more about this ones going to sell more than this one (and is wrong) than analyzing business practices. What does the "console war" have to do with sound investing? Not much when companies are bleeding themselves dry to "win".

When you buy stocks you look at the value of the stock you are buying, giving away money isn't good business.

EDIT: How is sony going to dominate '08? Are they going to suddenly start outselling the Wii 6 to 1 in Japan? Is he implying that the Wii is going to drop to 18k/week average and Sony sell 90k, or is he saying that Wii will continue to sell 90k/average and the PS3 will sell 540k/a week? Both scenarios seem pretty unlikely unrealistic crazy

Patcher is probably trying to make money by saying outragous things so he can get a book deal and more paid TV spots. Seriously if you are an investor there are better places to see how a company is doing. You can goto your trading website and see all of the numbers your self or you can goto VGchartz.

On an unrelated note, I need every one to go buy BioShock even if you don't own a PC or a 360 (disclaimer: I own stock in take two interactive, don't worry I bought it last monday at the "discount")

So Pachter thinks that both the 360 and PS3 will be making progress?  I really doubt that Pachter thinks that there is room in the market for all 3 consoles....he is just saying positive things about all three consoles and keeping his opinions to himself.

This is probably a smart idea.... I mean if he just went out and said that XXXXXX console is going to win it all, b/c I say so, he would look pretty dumb for doing that.

Except (of course) that Patcher already has made several claims that essentially state "XXXXXX console is going to win it all" ...

Initially Patcher stated in 2004 that the PSP was going to dominate and then in late 2005 he stated that by the end of 2006 the PSP was going to be in the lead; he believed that the PS3 was going to dominate this generation and then he changed his opinion that the PS3 would take the lead later in the generation.

The fact of the matter is that Patcher is strictly a financial analyst and has very little interest in gaming; much like many of the executives at third party publishers he has based his expectations on meaningless things like "Brand Awareness" and doesn't understand that people only care about the right product being offered at the right price. This is (really) no different from any other market, if Apple decided to offer the multi-touch screen on all iPods but this forced every one of their iPods to cost $600+ suddenly the Zune would take off.

Looks like a made a whole nother discusion. My bad. Let me elaborate on what I ment.

Sony will miss this Holiday season. I think we can all agree on that. There aren't many big mainstream titles coming that will push the console, while Wii Fit(Japan) Galaxys and Halo 3 all come out this year. What this will do is hurt Sonmy in the long run. As time goes on it will be harder and harder to bridge the gap. As more people buy the competition's consoles, that will increase intrest for those consoles, and push sales. If Sony has to wait till Christmas of 2008 to get a push, it won't be near as effective as it should be, or they want. Consumers by them will have made a choice. With more poeple they know owning 360s(at least in America) and Wiis, fewer people will care about the PS3. I feel their big titles and price cut will come too late.

Patcher is right by saying, that there's room in the market for all 3 console manufacturers... But only if they work as Nintendo. Keep themselves profitable and not base their strategies on a sales of 100M+.

I think that once Wii take the lead, it stays that way.

@Steven: It means that Patcher thinks that PS3 sells better in 08 than 360 or Wii, not that it would outsell their total.

 ........

Calling people dumb because of their opinion sjeezes how close minded can you be?

 Especially when you only can dream to be so succesfull as Patcher;. 

 Its soriku what do you expect, wiis defence force #1 tool.

C'mon, chill out everyone...

Analysts (like everyone) are entitled to their opinions.

@AllAll - avoid personal attacks please...

 Funny, I always thought it was their opinion on  a subject that determined their intelligence in the area. Silly me.

Success has nothing to do with intelligence. Paris Hilton makes millions of dollars off her handbag line. I seriously doubt she is a more intelligent than say Mussorgsky, who spent his life destitute and unappreciated, and was yet a musical genius.