ANALYSIS: Can a $399 PS3 Make a Dent?

October 12th, 2007, 16:57 Posted By: wraggster

Next-Gen speaks with six games industry analysts who weigh in on the potential impact of the rumored $399 40GB US PlayStation 3.

The six analysts that we spoke with all agreed that the rumored $399 40GB PS3 for the US would facilitate an up-tick in PS3 sales this holiday, but to varying degrees.

Industry analysis mainstay Michael Pachter with Wedbush Morgan suggests that with each price drop, PS3 will be able to sustain higher monthly sales. He predicts as much as a 50 percent increase in US PS3 hardware sales if the console drops to $399.

Billy Pidgeon with IDC isn't as confident in PS3 sales. "I don't expect major uptake on PS3 this holiday," he says. "Xbox 360 needs to make the most of this holiday and build up the base, but Nintendo could move more Wii consoles than the others combined."

Lazard Capital Markets' Colin Sebastian believes that there will be a "meaningful up-tick" in sales once a cheaper 40GB model is introduced, but a less-expensive console from Sony will have to be backed by a stronger third-party developer strategy.

Janco Partners' Mike Hickey says Sony can only do what it can with what it's got this holiday. "We don't think there is really anything Sony can do beyond a dramatic price cut and a verbal outcry for PS3 Blu-ray buyers to turn the tide of their dismal holiday sales outlook relative to the Xbox 360," he says rather bleakly. "[From a software standpoint,] consumers seem to be struggling with the ‘why pay considerably more for considerably less?' purchasing dilemma. We are increasingly less confident Sony will show anything remotely remarkable on the PS3 for this holiday."

http://www.next-gen.biz/index.php?op...=7486&Itemid=2

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