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Pachter: PS3 price cut could cost Sony $350 million


A PS3 price drop is an inevitability. The only questions are when, and how much. While it may seem like a no-brainer, Sony must carefully plan out a price drop if it wants to get anywhere near its goal for profitability. Outspoken analyst Michael Pachter notes that Sony could lose $350 million of profits on a price cut of just $50 (accounting for 6-7 million systems sold after a reduction). While a cut to $299 would be far more palpable to gamers, that would cost the company at least twice as much -- would Sony want to incur those losses during a difficult financial market?

Considering the exorbitant price tag on a price cut, it's likely Sony will choose the smallest cut possible. Pachter suggests that a $350 bundle, which includes a first party game (such as Killzone 2) is the likeliest solution for the company, predicting the drop will happen in October -- just in time for the holiday season.

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