Pachter pauses to percolate E3 thoughts, says $499 PS3 is here to stay

Wedbush-Morgan's Michael Pachter has been around the industry long enough to know that the first thing you do as an analyst the Monday after E3 is a brain dump. Bright and early this morning we received his report entitled "E3 2007 Review: The Good, The Bad, and the Ugly" in which Mr. Pachter fills you in on the stocks to buy, hold on to, and sell in the relative future (Cliffs Notes version found after the break).

Pachter says the theme of this E3 was "non-traditional" game software. Music games, games targeting or including female gamers and titles focused on the casual market. He also says that unlike prior E3s, access to new product offerings was relatively unrestricted -- well yeah, because everyone was there for business and barely had time to see the hangar. The key companies Pachter says to invest in are Activision, EA, THQ and Ubisoft. He also says the the big news of E3 was the Sony "price cut" and that he expects Microsoft to follow by the end of the year. But what about that 60GB not being manufactured news? Pachter thinks the $499 PS3 is here to stay and, when those 60GB units are depleted, the 80GB model will take its place.

This article was originally published on Joystiq.