In July, Sony cut the price of its 60Gb PS3 model from $599 to $499 and Microsoft followed in early August with a price cut for the Xbox 360 (Core to $279 from $299, Premium to $349 from $399, and Elite to $449 from $479). "Although it is likely that retailers will soon run out of the discontinued 60Gb PS3, we expect a price cut for the new 80Gb model (without a game bundle) to $499 some time before Thanksgiving," Pachter predicted.
He continued: "We think that Sonys recent announcement of an IPO for its financial services unit (with an estimated $3 billion in proceeds) could forebode another PS3 price cut early next year. We believe that the company is interested in subsidizing sales of the console in order to stabilize its market share in the games market and grow its lead in the high-definition DVD market. We expect a price cut no later than April, likely to $399 for the 80Gb model."
Finally, on this subject: "Although we do not expect another PS3, PSP, or 360 price cut this year (nor one for the Wii), we think a cut for the PS2 or DS is possible," Pachter added. "Any hardware price reduction could serve as a catalyst for sales growth later in the year."