Michael Pachter is expecting a $50 price drop for both the Xbox 360 and the Playstation 3 by Christmas '08. He also expects a slowdown in video game sales during the next three years, particulary by 2011, unless a new console is released.
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.
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.
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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Price drops done by the Manufacturer usually occur at every store. Of course if a new console isn't released once these next-gens are old the market will drop. But a new XBox is probably going to come out within two years.
If one kick ass game comes out, people arent going to go "oh, Im not getting it because a new console hasnt come out"