Michael Pachter
Michael Pachter
Michael Pachter is a video game, social media, digital media and electronics analyst with Wedbush Securities. He is also the Head of Research for the Private Shares Group, a Wedbush division which focuses on companies which have not yet gone public such as Facebookand Twitter. Pachter has an MBA & two law degrees. Pachter worked for 16 years at Arco where he was Arco's director of strategic planning until mid-1998...
dramatic expect growth modest november
We expect modest growth in November and dramatic growth in December,
believe choose compared console costs cut discount dramatic expect forecasts generation hardware higher itself last later lift lower million model next november price production reducing respond sales smaller software sony time xbox year
We expect a price cut for the PS2 later this year. We believe that Sony will respond to Microsoft's introduction of its next generation console with a cut from $149 to $99 some time before the November 22 Xbox 360 launch, ... We think that Sony has positioned itself to lower price by reducing the production costs of its console when it redesigned the box to a smaller format... Should Sony choose to discount the PS2 to $129 or even $99, we would expect a dramatic lift in PS2 hardware sales, and a corresponding lift in PS2 software sales. Our model forecasts that Sony PS2 hardware sales will be 1.8 million units higher this year compared to last year.
decline dramatic expected holidays months none sales six
The year's a mess. None of us thought six months ago the holidays would be so weak, and no one expected there'd be such a dramatic decline in sales for the current-generation of games.
believe microsoft million people relatively shipped xbox
There are 5 million people who really believe they are getting an Xbox 360 relatively soon, by February. Microsoft has shipped 500,000 units, so 4.5 million people are doing nothing. That's enough to just kill Christmas.
competing competition everybody needs sony understand
What everybody needs to understand is Sony is not competing with Microsoft. Sony's competition is with Toshiba.
happening
There are many, many things that are happening that are not normal.
came
I don't know where he came up with 20 million,
added number reason
One reason they didn't make my number was because they added so much to the reserves.
bid meat nobody pick stop wait
Nobody comes in to bid on that. They wait for the body to stop twitching, then swoop down and pick the meat off the carcass.
box close content either harnessing next pc power processing several skeptical using word
I am skeptical that we are going to see content that even comes close to harnessing the power of either box for the next several years. It's like using a 3.2 gigahertz PC or a 3.4 gigahertz PC for word processing -- it's not going to make much of a difference.
clever definition guess monitor owners sell
My guess is they want to sell high- definition discs. You want to get the high-definition monitor owners drooling. It's clever marketing.
battle content entertainment fixated group large money paying people possible press privilege putting sony studios video
Most of the press are fixated on video games. They think Sony is only in a battle with Microsoft. Sony is in a battle to make as much money as possible for the privilege of putting entertainment content in a Sony format. They already have a large group of people paying them for video games. They want a large group of studios paying them for movies.
business close cushion edge giving hesitate plays themselves trip weather
I think they are very close to the edge with the banks. If the business plays out the way I think it will play out, they won't trip the covenants. I think they are not giving themselves enough cushion to weather a downturn and it makes me hesitate in recommending the stock.
christmas november
I think they are being appropriately conservative about Christmas because it's November 1.