Wedbush Morgan analyst Michael Patcher expects the PS2 to experience a price cut before the holidays, but further to this a PS3 price drop might be delayed and re-scheduled for early 2008 due to the expected emergrence of GTA IV and MGS 4.

Quote:
"We continue to expect higher average console prices to be an impediment to rapid sell-through of hardware," said Pachter, "and we expect cycle-to-cycle declines of 10% or more for hardware sales to persist through the end of summer 2007."

Following Sony's $100 price cut on its 60 gig model PS3, and the recently announced drop on all models of Xbox 360, Pachter thinks it might be too soon to see Sony dropping the PS3's price yet again, but adds that "a price cut for the PS2 is possible," adding that "any hardware price reduction could serve as a catalyst for sales growth later in the year."