Price reduction would continue overall market growth for '07
Wedbush Morgan analyst Michael Pachter believes Sony couldn't pick a better time or place to announce further price cuts for the PS3 and PS2 than next week's Tokyo Game Show.
Not only would a much-rumoured price announcement take some of the shine off rival Microsoft's Halo 3 launch on September 25, but it would also help the US industry see a further increase in sales for the rest of 2007.
"There have been recent rumours about a new 40GB PS3 sku planned for release prior to the holidays at a USD 399 price point, and other rumours about an impending PS2 price cut to USD 99," noted Pachter.
"We think that both of these ideas have merit, and note that SCE president Kaz Hirai is the keynote speaker at next week’s Tokyo Game Show. If the rumours are true, we cannot think of a better forum for making such an announcement, given that the event is less than a week before the launch of arch rival Microsoft’s Halo 3.
"Should Sony cut prices, we think that continued strong industry sales are all but certain," he added.
Recent figures from the NPD Group have shown that sales of the PlayStation 3 are trailing the Wii and Xbox 360 in North America – with Xbox 360 sales double that of the PS3 in August.
Pachter also estimates that Halo 3 will sell over 3 million units in the US in 12 days, helping to drive Xbox 360 console sales over 400,000 in the month of September.
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