Sections

Patcher expects console prices to be cut this year, Sony first to do so

Saturday, 15th January 2011 17:33 GMT By Stephany Nunneley

20110114ps3home_gt

Analyst Michael Pachter believes a drop in console prices will help counter the current financial slump in the games industry.

Last year, according to Pachter, the 20 percent decline in both the music genre and Nintendo software sales, were to blame for the financial decline, as well as “stubborn hardware price points”.

“We believe that sticky price points for the three major consoles triggered a 5 percent overall decline in console hardware unit sales for 2010,” he said in response to the December NPDs. “Handhelds performed even worse, with unit sales down 25 percent, contributing to continuing software weakness”

“We fully expect each of the three consoles to be offered at lower prices in 2011, with Sony likely leading the way as its manufacturing costs continue to decline,” he continued. “A $50 price cut should be sufficient to drive 5 percent software sales growth; and, coupled with a resurgence in handheld software sales and an easy comparison for music sales, we think that overall software sales growth could hit low double digits in 2011.”

The NPD released its figures for December earlier in the week.

Thanks, Industry Gamers.

Breaking news

8 Comments

Sign in to post a comment.

  1. OrbitMonkey

    Hope he’s right on this one, fancy picking up myself a 360/Kinnect bundle for the kids soon :D

    #1 3 years ago
  2. G1GAHURTZ

    Is that the royal “we”?

    #2 3 years ago
  3. Razor

    I’ll be stunned if Sony cut the price first. Their mantra seems to have been profitability over everything else. I think they’ll wait until the moment MS cut the price.

    #3 3 years ago
  4. pukem0n

    well, MS wont cut price until interest in Kinect drops dramatically

    #4 3 years ago
  5. Dannybuoy

    Fucking hell. Does Pach really get paid to say obvious stuff?

    #5 3 years ago
  6. Crysis

    @3, I thought MS was the bigger money sucking company? The PS3 is more expensive, doesn’t mean Sony are making larger profits on each sale.
    In fact Nintendo have been profiting more then Sony & MS (in video games industry), but Nintendo always seems to have an innocent look about it so people turn their anger to the massive media conglomerate…

    #6 3 years ago
  7. Anders

    @5 The stuff is obvious to us, but not to the people who come to Pachter for insights.

    #7 3 years ago
  8. Hybridpsycho

    @7 Word.

    Pachter this is probably the only true thing I’ve read that he’s said. He normally just comes up with stupid ideas >_>
    Just take the “Next gen consoles will be handheld!”. Well duurrrh stupid, there are allready handheld consoles and next gen will NOT be handled. Except from Nintendo 3DS, PSP2 etc. :o

    #8 3 years ago