Pachter: 80 GB PlayStation 3 Likely To Get Price Cut

The newly-announced $600 model of PlayStation 3, which features an 80 GB hard drive but removes the legacy PS2 hardware, will likely come down in price when supplies of the older model are depleted, says Wedbush Morgan Securities analyst Michael Pachter.

In our view, the Sony entry level price of $499 is here to stay. We believe that there are presently 2 – 3 million 60Gb PS3s produced and not yet sold, and expect the entire supply to be diverted to the U.S. to honor the new lower price point. Once these units are sold through, we expect the company to lower the price of its 80Gb model to $499 on a standalone basis.

This is basically what I've been saying, although with fewer curse words. Sony doesn't want to raise the price of PlayStation 3 again. So as soon as they officially announce, sometime this year, that the moribund 60 GB PS3 has been discontinued, they'll likely lower the price of the 80 GB model to $500.

Of course, the only question that remains is, how much time will elapse between the official discontinuation of the PS3 and the point at which buyers cannot effectively find the $500 units? If the 60 GB models sell out before Sony drops price on the 80 GB, then PS3's price will have de facto been increased again. Remember, Sony is making more money (read: losing less money) on these 80 GB units, which means that they want to sell them at $600 for as long as they can.

More of Pachter's key statements this morning, from his E3 wrapup sent out to media and investors, after the jump.

On Microsoft:

The company did not cut the price of its Xbox 360 despite our speculation that Microsoft would feel compelled to do so after Sony’s price cut. It appears to us that the company is trying to deal effectively with its warranty issues, and was concerned that a price cut so soon after the warranty announcement might send an unintended signal that discounts were required to move hardware. We continue to believe that a price cut is appropriate, and expect cuts later in the year.

On Nintendo:

In our opinion, Nintendo’s momentum will be difficult to overcome, as its Wii and DS are both big successes around the world.