Videogame analyst superstar Michael Pachter expects there to be a price cut for the PlayStation 3 by the end of the year, and says that it might even come as early as this summer. GI.biz quotes Pachter,

"It is possible that Sony's cost of production for the PS3 has declined to the point that the company may consider a hardware price cut some time this summer, and we may see a price cut for the PS2 before the holidays."

As long as Sony's manufacturing costs have dropped to a reasonable rate, I'd heartily encourage Sony to drop the price of the PS3 as soon as possible. It's very clear that people desperately WANT a PS3, but just can't afford it. Dropping it to $500US and then marketing the hell out of the price drop would do wonders for their sales. Just look at what a 30 dollar price drop did for the PSP.

I think it would be a mistake to drop the price of the PS2 alongside the PS3. The PS2 is cannablizing PS3 sales, in my opinion. Leave it at 130, let it bring in heaps of profit to offset some of the debt the PS3 is incurring, and, if at all possible, drop the PS3 price ASAP.

Sigh, when will people stop paying Pachter any mind. A broken clock is right two times a day and it is more accurate than Pachter.

Because of the PS3's individualized processor, the Cell, it would benefit from a price cut with increased demand as already mentioned. What has not been mentioned is that because of this increased demand, the price for sony to manufacture the PS3 would fall as well.

Let's see. This is the guy who said 64 bit games take twice as long to develop for as 32 bit games because they have twice the bits. This is the guy who said that World of Warcraft would fall down to 1 million subscribers in 2006. This is the guy who said that blu ray is going to be the reason Sony is number 1 this generation.

Well, I actually hope he's right. If Sony drops the PS3 to $500 I'll probably be able to get a 360 for $300.

I find it interesting, though, that the $500 PS3 didn't sell.

your display is kind of..disgusting really..

I think Micheal Patcher is a good analyst. I do but I doubt the PS3 will get a price drop this summer. I hope there is ( I want one really bad) because there are hidden costs. Manditory-PS3, Tax, Game Additional- Games, Extra Controller, and if you want more then there you go. Manditory- 600(PS3)+50(tax)+60 (Game)= $710 Additional- 60(Another game)+50(Controller 2)+10(Tax)= $120 If you Wanted everything it would be a little more then $830 which is a lot but if they dropped the price $100 then it would be $730. I only want Manditory and a controller so that would be $760 but if we got the price drop then I would only have to pay $660. Still a lot but a little more barrible.

Sorry for the double post but no. Why would the 360 get cheaper if the PS3 gets cheaper? The 360 will get cheaper if Microsoft wants to sell more consoles with more of a loss.

MS would drop the price to stay well under the PS3's entry price. And while MS is taking a loss on each console (even that is rumored to be false), Sony is taking an even bigger loss on each unit sold.

Sony can't afford a price war with MS. Not only does MS have infinitely deeper pockets than Sony, but they also are losing less (if anything) on each 360. By the time summer rolls around, MS will be moving to 65nm process and they'll almost assuredly be making a small profit on each 360 by then.