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Sony is unlikely to cut the price of its PlayStation 3 console until early 2008 observes Wedbush Morgan analyst, Michael Pachter, who added he expects the firm to instead lower the price of PlayStation 2 some time before the Christmas holiday season.

Speaking in a note to investors this week, Pachter commented, "Although we do not expect another PS3 price cut this year, we think a price cut for the PS2 is possible," adding, "Any hardware price reduction could serve as a catalyst for sales growth later in the year."

However, Pachter expects Sony to strategically place it’s next PS3 price cut to coincide with forthcoming releases Grand Theft Auto IV and Metal Gear Solid 4, stating, "We do expect Sony to be in a position to cut the price of the PS3 in early 2008, when blockbuster games Grand Theft Auto IV and PS3 exclusive Metal Gear Solid 4 will launch.”

Concluding, Pachter anticipates healthy growth among publishers throughout 2007 as investors concerns over the next-generation leap subside: “Should industry sales continue to be strong, we think that investors concerns about a secular shift away from videogames will subside, and we expect the US publisher stocks to continue to appreciate”, he said.
 
"It may take until after the holidays when concerns about the 'stalled' cycle are fully alleviated, and we expect volatility for videogame stocks through the year, though with an upward bias.”