Everyone interested in their video games has heard of Wedbush Morgan analyst Michael Pachter. The man has a good record of predicting stuff and this time, you're going to like his predictions... a lot. According to GameIndustry.biz Pachter believes that the PlayStation 3 isn't going to see another price cut this year. However, he does see a reduction in price for the next-gen console in time for the launch of Rockstar's GTA IV and Konami's Metal Gear Solid 4, in 2008. The PS2 on the other hand, is a different matter altogether...

"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, according to the upper mentioned website. "Any hardware price reduction could serve as a catalyst for sales growth later in the year."

As for the PS3... "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 continued commenting that "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."

However, it may take a while, Pachter reckons: "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."

As I mentioned before, Michael Pachter has a pretty good record of predictions regarding the video games market, but that's only because he doesn't bet too high either. You see, while some analysts prefer to be radical and scare everyone with their prognostications, Pachter keeps a steady attitude and tells people what's on his mind only after analyzing every possible aspect. Well, he is an "analyst" after all...