Sony may have been "overly ambitious", warns Pachter
Ellie Gibson 14:06 (BST) 18/05/2007
"Most consumers are balking at the price of PS3"
Wedbush Morgan analyst Michael Pachter has warned that Sony will have to make difficult decisions regarding the PS3's price point if sales of the console are to improve.
Speaking to GamesIndustry.biz Pachter said, "I think Sony's strategy of including a Blu-ray drive and a microprocessor that will stand up to ten more years of technological advances may have been overly ambitious - given that they have so far asked consumers to pay for the high definition movie option and to help finance development of the Cell."
Pachter's comments came after NPD released US sales figures for April, revealing that although PS2 and PSP are selling well the Game Boy Advance is proving more popular than PlayStation 3.
"It's not good news for Sony that most consumers are balking at paying the prices asked for PS3s," Pachter said.
"Sony has to make a choice between subsidising the Blu-ray and cell costs, or waiting until their production costs drop. It's more likely than not that they will break with tradition and cut prices below manufacturing costs."
So far Sony has offered no hint as to when a price cut for PlayStation 3 might be announced. Pachter offered, "My guess is that this will happen at E3 in July, but one never knows with Sony."