Video games industry analyst, Michael Pachter, recently stated that he believes the PlayStation 3 will be the first console to cut prices in 2011. The analyst targets sticky price points for the three major consoles led to a decline in sales in 2010. He also believes the PS3 will lead the way with a $50 price cut that should be sufficient to entice consumers to buy the do everything entertainment hub in 2011.
“We believe that sticky price points for the three major consoles triggered a 5 percent overall decline in console hardware unit sales for 2010,” he said in response to the December NPDs. “Handhelds performed even worse, with unit sales down 25 percent, contributing to continuing software weakness”
“We fully expect each of the three consoles to be offered at lower prices in 2011, with Sony likely leading the way as its manufacturing costs continue to decline,” he continued. “A $50 price cut should be sufficient to drive 5 percent software sales growth; and, coupled with a resurgence in handheld software sales and an easy comparison for music sales, we think that overall software sales growth could hit low double digits in 2011.”