Soothsayer and Wedbush Morgan analyst Michael Pachter has looked into his crystal ball and has a handful of predictions. He always does. In short, software sales are up, hardware sales aren't. Today's forecasts:

We expect cycle-to-cycle declines of 10 percent or more for hardware sales to persist through the end of summer 2007... It is possible that Sony's cost of production for the PS3 has declined to the point that the company may consider a hardware price cut some time this summer, and we may see a price cut for the PS2 and Xbox 360 before the holidays.

And with that, the Pach returns to his lair to shift through animal entrails and burnt embers. You know, looking for glimpses of teh future. Brian Ashcraft

Patcher Talks Hardware [Games Industry]