Pachter: Console Price Drops This Holiday

Illustration for article titled Pachter: Console Price Drops This Holiday

Analyst Michael Pachter expects a $50 price drop will be hitting both the Playstation 3 and Xbox 360 this holiday, but that it will still be hard for the industry to match last year's extraordinary holiday sales.

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Speaking at the Electronic Gaming Summit this afternoon, Pachter said that he expects an overall slowdown in video game sales over the next three years.

Pachter expects the industry to see 19 percent growth in the U.S. and 20 percent in Europe this year, with his predicted price drop this holiday. Next year, Pachter expects growth to dip to 16 and 18 percent, unless the consoles drop another $100, which would add another five percent to growth. In 2010 growth will slow to 10 percent and seven percent, unless consoles drop in price by $150, Pachter said.

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By the year 2011 Pachter predicts that the industry will flatline unless a new console is introduced.

Wait. That means that game sales will flatten out after six years unless we get a new console. There goes Microsoft's hopes for a seven year console and Sony's plans for a ten year one.

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DISCUSSION

DarthTigris
Darth Tigris

I predict a price cut for the 360, but not the PS3 (unless sales plummet, which is doubtful). And I expect it to be more than a measely $50 this time. I expect it to equal if not surpass the European price cut, respectively.

And, because of future price cuts, I also expect console sales to remain strong this gen. Seriously, why would they flatline completely when they become more affordable? That doesn't make sense. The only thing that I see flatlining is the Wii, because its already selling so ridiculously already. If it sold anymore, they'd rise up against humanity and enslave us all.

I, for one, welcome our future console overlords. I'd like to remind them that as a trusted gamer I could be helpful in rounding up others to toil in their underground manufacturing plants.