Exactly what i was thinking, and MS also sell Arcades at a profit.

AWESOME! Didn't he originally say that he didn't see 3DS doing anything? Now he plays the other side of the fence. Pachter is a clone who argues against himself. Yes, Pachter is inspired by Colbert where he debates himself:
http://www.colbertnation.com/video/tag/Formidable%20Opponent

The only part I don't agree with is his notion that the 360 redesign would only save $20-30... that's ridiculous. Shrinking both cpu and gpu and combining it into one chip alone would save them $50+. Then you have less materials per unit since it is shrunken down, no more memory card slots, etc. I expect the redesign to save MS close to $100 on production costs from the current model.

Child please... Do not take the technical information spoken by a financial analyst as gospel. You'll only get hurt and you'll lose your job and your children will get kicked out of their prestigious private acadamy because you couldn't pay the bill. They'll hate you forever and so will your wife because you believed some technical speculation from a financial analyst was accurate.

P.S. What he means is new silicon same basic architecture but cheaper to manufactur, like for instance GPU+CPU on the same die which saves costs as the manufacturing cost for one combined is about the same as two of them previously.

P.P.S. Kantie panties are available for you to give your wife/mother for Mothers Day.

Maybe Patcher's estimation is a bit conservative but yours is just insane. 

“I think there is a 360 Slim, although I don’t think they will call it Slim since the PS3 is called that. I think there is a cheaper version of the Xbox 360 console coming out. I think it will probably have a different graphics card and processor, and if it does exist they will save around $20/30 on each unit.

===================================================================================

Hmmm unlikely given the compatibility issues that would almost certainly arise.

More likely a reworked motherboard and a reduced die size chips.

Definitely not "DIFFERENT"

You see this is what happens when you allow non technical people to become technical analysts.

CPU shrink: $20-30 saved

GPU shrink: $20-30 saved

Combined CPU/GPU chip: $20-30 saved

Less cooling needed: $10-20 saved

Less plastic and casing materials: $5-10 saved

No Memory card slots and overall mobo shrink: $5-15 saved

Plus you have all the manufacturing cost reductions from skipping a year with no price cut.

So I'd say at minimum this would save MS $75 and possibly up to $100.

Its probably closer to $50-$70 per unit but you have to remember they have to pay royalties on every console they ship to the DVD forum, ATI and IBM. With ATI its big enough for them to mention on their financial report for end of financial year 2011.

Overall its:

• Likely 4 1Gbit GDDR3 chips ~$8-12 savings
• One chip vs two ~$15 direct material costs and testing given an estimated $5000 price per wafer and ~330 good chips per wafer.
• Likely $10 savings on motherboard complexity, board tracing etc.
• Likely $5 savings on the PSU
• Increase of $5 on DVD-drive for being slim
• Likely $10 savings on cooling.
• Likely $5 savings on msic items like memory card slots.

Total: $50.

Additional: Probably a $15-20 or so savings on average warranty repair costs due to more reliable design.

Just a rough work through of the overall costs.

So Pachter should just stick to his knitting then. Keep making earnings and financial predictions and stop with the other gaming predictions. He's had way more than his allotted 15 minutes of fame.

Actually Sony doesn't call their new PS3 model Slim...