Sony to cut PS3 price for GTA IV release - Pachter

Leading industry analyst Michael Pachter believes that there won't be another drop in price for the PlayStation 3 this year, instead Sony will likely reposition the console price ahead of the release of highly anticipated software titles GTA IV and Metal Gear Solid 4 in 2008.

However, the Wedbush Morgan exec does expect a further price drop for Sony's PlayStation 2 console before Christmas.

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

"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," he offered.

Pachter also believes that publishers will continue to see growth in 2007, as investor's fears over the console transition begin to disappear.

"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.

"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," he said.