Analysts predict hardware shortages, more price cuts

[Saurgrist]

Originally Posted by GameSpot

With the holiday release schedule reaching a crescendo next month, a pair of analysts released new industry updates to investors this morning. Wedbush Morgan Securities analyst Michael Pachter postulated that a round of price cuts might be in the cards for early next year, while Lazard Capital Markets' Colin Sebastian warned that console and portable hardware could be in short supply this holiday season.

In Pachter's monthly industry update, he recapped recent industry happenings, including recent price drops and new bundles for the PlayStation 3, Xbox 360, and PlayStation 2. He also predicted that prices could drop even further. Pachter suggested Sony might lower the PS2 price next year in order to meet its recently raised fiscal year forecast of 2 million systems sold. He expects the PS3 to receive another price cut as well, this one to accompany a spring release slate that would include Grand Theft Auto IV, Metal Gear Solid 4, LittleBigPlanet, and Gran Turismo 5.

As for the Wii, Pachter said a price cut won't happen until supplies of the system finally measure up to demand, something Nintendo has said isn't likely to happen until next year. However, Pachter singled out the February 10 launch of Super Smash Bros. Brawl as a prime opportunity for Nintendo to tweak the Wii price.

In the near term, Sebastian said industry sales trends are "generally healthy" heading into the holidays. However, there are two factors that might result in lowered industrywide revenues for the quarter: lower-than-expected prices on new PS2 and Wii software, and hardware shortages on a number of systems.

"We believe console and handheld hardware could end up in short supply at retail stores over the holiday period with ongoing strong demand for Nintendo's Wii," Sebastian wrote, "partially alleviated by a reallocation of hardware from Japan to North America."

Sebastian also said strong sales of the Xbox 360 after the release of Halo 3 might have left retailers with lower-than-expected supplies of that system as the holiday season ramps up. Further, Sebastian expects that the redesigned PlayStation Portable and PS3 could benefit from their respective bundles and price cuts.

Price cuts are always good, although I do not see Nintendo making many price cuts soon, their product is still at launch price and is still less than what the PS and PS2 cost during their launches... $250 is not asking too much for that system.

[TGLucario]

price cuts are always good & with it being near xmas, they can flog more @ a lower price!

[Saurgrist]

Originally Posted by Disco Racer King

price cuts are always good & with it being near xmas, they can flog more @ a lower price!

Exactly, consoles will just be really hard to find if the prices drop right near "Black Friday" or soon thereafter. Heck, they will be hard to find anyway I think...

[Coppaforlife]

I guess now it would be worth it to purchase one if the price cut is right.

[jsdadx2]

For me its not the price of things like PS2, let's cut the cost of gas!!!

[Coppaforlife]

Gas, is a necessity and no matter what the price of it, it has to be purchased. So, there is no thought process or pondering that goes into waiting untilgas prices decrease. Games consoles aren't a necessity, so unless the price is right and not an overkill I can do without.

[EmperorStyleS2k]

well said coppa

[banjobob]

yes cut the cost of the games also . would be helpful they r getting to pricey. i think

[Phil]

To be fair the Wii is out selling all the other consols and as said above it is still at launch price so why change it, they are constantly out of stock in most places and when they are back in they go straight away! So price cuts on the PS3 will be welcome so sales will go up.

[saltlick52]

yes phil i agree with u sales will go up and that should u think help keep things are so costly.