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All about industry analysts on Bonus Round
Everyone's favorite Wedbush-Morgan analyst, Michael Pachter, joins IDC's Billy Pidgeon for this weeks episode of Bonus Round, focusing on video game analysts. Throughout their interview with Geoff Keighley, one thing is made abundantly clear: they're not doing their job for us, the players, but for the serious investors out there. That said, the question that seems to pop up every time their comments filter their way through the media is, "Why should we listen to them in the first place?"Michael Pachter says, "Nobody should listen to me on my opinion about anything." That would be a legendary quote right there, but Pachter continues, "... Except whether one of the companies I cover is going to meet or miss an earnings estimate and how they're going to perform going forward." Curses. You win this round, Pachter! Insightful as well as educational, it's another episode of Bonus Round worth checking out.
Sony won't lose money on PSP, says analyst
Prices for PSP have been dropping worldwide, and some have been asking why the price drop wasn't more significant. According to IDC's Billy Pidgeon, Sony will never price the system lower than its manufacturing cost. Unlike PS3, which Sony sells at a loss, PSP will bring profit for the publisher. "[Sony] will continue to lower price as they gain economies of scale, but it's not likely that the company will price below its marginal cost of production to move a few more units."The price drop should not be seen as a move of desperation as some people have been painting it. It's undeniable that PSP sales have been lacking compared to the DS. However, comparisons between the two simply are not apt: "I don't think Sony will 'beat' the DS, nor do I think that they aspire to do so." Pidgeon blames the media for encouraging the PSP-DS debate, a crime which we can admit to. "Games for the two devices are different, and the gaming experience is quite different. I think that the only people who care about the DS-PSP sales battle are the media."[Via GI.biz]
