PS3 Fanboy

Michael Pachter has certainly had his hits and misses, but if his latest hunch turns out to be true, we'll be pretty damn happy. While filming an episode of Bonus Round on Gamespot, Pachter suggested that EA will port Mass Effect to the PS3. Since EA expects $300 million in revenue a year from Bioware and Pandemic, it wasn't looking to only publish games on the 360, he said.

"I wouldn't be surprised if Mass Effect 1 came to PS3, the Wedbush Morgan analyst said. "It has to."

After already selling a million copies in three weeks, Mass Effect is a certifiable hit, and we all know much EA likes to spread its library across as many platforms as possible to maximize revenue. We just hope that if it does happen, it will be as soon as possible, or if we do have to wait awhile, we can get some exclusive bonus content. We just can't get enough of that lesbian alien sex!

[Via Joystiq]

Signs are pointing to a November 2nd launch of the price (and feature) reduced 40GB PS3. However, where is the buzz? Why is there no official confirmation from SCEA? "These rolling announcements suggest to me that Sony has an inventory control problem, with too many unsold 60GB units out there, and they don't want to have to cut the price to clear them," Wedbush Morgan securities analyst Michael Pachter told GI.biz.

Certainly, it appears that 60GB machines are still in ample supply in spite of Sony's proclamation that the system is no longer being manufactured. Are the systems selling at an even slower rate than anticipated? Seemingly. However, what will happen when November 2nd rolls along, and 60GB systems are still in stock? Sony will have to "accept reality and bundle [the 60GB with] a game and an extra controller for USD 499.99, giving consumers some value for their money." However, in spite of a price drop, it appears that Pachter is not confident that a price drop will significantly increase sales for Sony's system. What price must the PS3 reach for it to appeal to the masses?

So, the 40GB PS3 is losing backwards compatibility with PS2 games. Is that a big deal? You voted, but let's hear what the analysts have to say. From a business perspective, it makes sense for Sony to remove the feature. "Cost is hard to gauge, probably $30 - $50 per unit," Wedbush Morgan Securities' Michael Pachter told GameDaily. A significant savings, when one considers the thousands of systems Sony must sell. Will the lack of PS2 support affect PS3 sales? "I thought lack of backward compatibility would hurt the Xbox [360], but it really didn't," Pachter noted.

However, NPD analyst Anita Frazier has some data that might concern Sony. "Nearly 70 percent said that [backwards compatibility] was an important feature to them."

Regardless, when it comes down to the choice between backwards compatibility and saving $100, the choice will be clear for most consumers. Colin Sebastian, an analyst at Lazard Capital Markets noted: "It appears that pricing is becoming more of a priority, which makes sense given where the PS3 is selling in terms of market share. I don't believe removing backwards compatibility is a huge deal, considering that most people who want to play PS2 games will continue to do so on their PS2s."

According to industry analyst Michael Pachter, the PlayStation 3 finally outsold the 360 in July due to a combination of the E3 price drop and the 360's warranty announcement. His final numbers for the new consoles in July had the Wii on top as usual with 330k, the PS3 in second place with 160k and the 360 last with 115k . This represents a roughly 2x increase in PS3 sales compared to the month before.

Considering the price drop wasn't even in effect the entire month, it will be interesting to see what happens with PS3 sales in August. We're also finally starting to get games, which always helps out sales as well (though the only big title, Warhawk, is coming out at the very end of August). Of course the 360's price drop also went into effect, and their big games are starting to trickle out a little earlier so it's hard to judge what will happen. Hopefully Sony can keep the momentum up!

[Via Joystiq]

Is Madden's 30 fps performance on PS3 hurting Sony? Two analysts have very differing opinions on how EA's football game might be affecting public view of the PS3. UBS analyst Ben Schachter noted that: "given Madden's popularity and the volume of this debate, we think this is a more meaningful negative for Sony than investors might realize, as it gives gamers just one more reason not to buy a PS3 this year following the slip of GTA IV. It is a positive for MSFT."

However, Wedbush Morgan Securities analyst Michael Pachter disagrees. In a statement to GameDaily BIZ, he comments: "There are obviously PS3 games that look fantastic (have you played Resistance, Motorstorm, or seen Call of Duty 4?). It's not an issue with the PS3 ... Eventually (as in next year), EA will figure it out, and nobody will care."

Microsoft has been heavily promoting Madden 2008 for Xbox 360, hoping it becomes the console of choice for what is a yearly bestseller. However, Pachter is frustrated that media that calls attention to the Madden debacle hasn't focused on something he thinks is a far bigger concern: "One would think that stupid analysts would be writing about the 360 warranty issue, and how people will avoid that box until they can be assured that they won't see the 'three red rings of death.'" Those are fighting words!

Will they? Won't they? This is worse than Ross and Rachel. Ah, the 90s. Simpler times. Since Thursday, we've been questioning whether the 80GB PS3 will drop to $499 once the 60GB version sells out. We're fairly comfortable with our prediction that it will and Michael Pachter, of Wedbush Morgan, agrees.

Pachter states that "the Sony entry level price of $499 is here to stay" and that "there are presently 2 – 3 million 60Gb PS3s produced and not yet sold." This number constitutes up 75% of PS3s in the hands of consumers right now, so the idea of that many selling out before the end of the month, as Reeves suggested, is ridiculous. Pachter's reasoning for why he expects the 80GB model to drop in price is similar to most people's. The 80GB PS3 should cost Sony as much, if not less, to produce than the 60GB model thanks to removal of the Emotion Engine (which, at this point, is the PS3's equivalent of the appendix). Not to mention that Motorstorm is included in the 80GB box, so removing the game will allow the bundle to drop in price by at least $50.

Pachter ends his report by saying that he expects "the $499 price point to be maintained until early next year, when the 80Gb model will likely be cut again to $399." We're not so sure about this ourselves, but we'd definitely like to see it happen.

Videogame analyst superstar Michael Pachter expects there to be a price cut for the PlayStation 3 by the end of the year, and says that it might even come as early as this summer. GI.biz quotes Pachter,

"It is possible that Sony's cost of production for the PS3 has declined to the point that the company may consider a hardware price cut some time this summer, and we may see a price cut for the PS2 before the holidays."

As long as Sony's manufacturing costs have dropped to a reasonable rate, I'd heartily encourage Sony to drop the price of the PS3 as soon as possible. It's very clear that people desperately WANT a PS3, but just can't afford it. Dropping it to $500US and then marketing the hell out of the price drop would do wonders for their sales. Just look at what a 30 dollar price drop did for the PSP.