Fri, Jan 23, 2009 | 14:53 GMT
Pachter: Sony “is a distant third, and is falling behind at a rapid pace”
Wedbush Morgan analyst Michael Pachter has issued a broadside at Sony saying that the company is a “distant third” in the console price and that price is killing the PlayStation 3.
“Sony has historically priced at its production cost (or above), but it has historically been in first place,” he told CVG.
“This generation, the company is a distant third, and is falling behind at a rapid pace.”
“Keeping the PS3 price high kills Sony, and gives Microsoft a huge competitive advantage,” he went on. “In my view, every Xbox 360 sold is a lost opportunity for Sony to sell a PS3, and Microsoft has no intention of taking a sabbatical.
“Lowering the price will cost Sony a lot, but it should generate sufficient future profits from game and Blu-ray movie sales and royalties to offset those losses,” concluded Pachter.
Sony announced yesterday cuts were to be made to its “Gaming Segment” as the firm looks to save ¥250 billion this year.
By Mike Bowden



16 comments
#1
Blerk
23/01/09, 2:55 pm
Given what’s been happening to Sony this week, I’d imagine a PS3 price cut is probably the last thing on their minds.
#2
Syrok
23/01/09, 3:00 pm
Didn’t he say that last week? And the week before that?
“Playstation 3 – The third place”
Who would have thought Sony marketing would be so right with the slogan two years ago.
#3
Whizzo
23/01/09, 3:02 pm
Sony has to do something though, all they seem be doing at the moment is rearranging the deckchairs on the Titanic.
#4
Alakratt
23/01/09, 3:08 pm
My god, this guy does not shut up!
#5
Blerk
23/01/09, 3:09 pm
Well… it is kind of his job.
#6
Retroid
23/01/09, 3:12 pm
He wins the “No shit, Sherlock” award for that.
I have a feeling they’ll cut price a month or so after Killzone 2 is unleashed. Which does at least look lovely from what I’ve seen of it.
#7
gaz
23/01/09, 3:21 pm
Pachter has no insider knowledge, he doesn’t sit on the board at Sony. It’s people like him that speculate and cause massive damage to the economy. Sony may be struggling at the moment, guess what, so are most companies right now. Sony have said time and again they have a 10 year plan for PS3. Killzone 2, Uncharted 2 as well as Resident Evil 5, Tekken 6 etc make for promising year for this machine. BluRay will be a hi Def format of choice until very high broadband speeds are affordable and available to all for movie download. Also Sony’s machine doesn’t break constantly. M$ have a great lead but they are far from the millions of original PSones and PS2s sold in their lifetimes, this generation has plenty of life left in it yet.
#8
Whizzo
23/01/09, 3:21 pm
A UK price drop would be really difficult to achieve with the way the pound has tanked but then again a £300 console doesn’t seem to be doing much business here either.
#9
G1GAHURTZ
23/01/09, 3:22 pm
“unleashed” – lol.
No, seriously. The PS3 is doomed.
#10
wz
23/01/09, 3:26 pm
It’s always good to hear that Sony’s masterplan is, obviously, not selling consoles.
#11
Retroid
23/01/09, 3:33 pm
Pachter causes massive damage to Sony?
Well, then, that’s their fault for employing Giant Enemy Crabs.
#12
TristanMike
23/01/09, 4:04 pm
If Sony stepped up and secured the amount of exclusive content that Microsoft is, price of the console would never be an issue. If that’s where the games are, people will pay for the system whether they realize the immediate value or not.
It seems this generation Sony is run by a bunch of idiots. At almost every turn Sony looks stupid. The things they say (Rumble a thing of the past), the things they do (gimp the PS3), the promises they fail to keep or do half assed (fractured Trophy library or Custom Sdtrks at developers discretion)… it seems like they have no idea what they’re doing and they don’t look like the Sony of old at all.
I often wonder where they get their consumer feed back from.
#13
mortiferus
23/01/09, 4:18 pm
Wow, Patcher is just realizing this? Holy fuck…
#14
Rhythm
23/01/09, 4:49 pm
Indeed. As much as I hope that the machine I chose doesn’t get chopped, I can only see Sony digging themselves further and further into the mire when they don’t reduce that price.
#15
fearmonkey
23/01/09, 8:05 pm
Michael Pachter is nice guy, but I get tired of his comments. He has a 60 percent right track record, which is lousy.
#16
Norlick
23/01/09, 9:55 pm
This guy used to be so perfect with his magic-8-ball-predictions, but ever since he said Wii was a short-lived fad he’s been completely missing the mark.
I mean he’s said the same thing every week since like a year ago recurring, fuck.