Wedbush Morgan analyst Michael Pachter has stated that he feels the optimum time for Sony to slash the price of PlayStation 2 and announce availability of a 40GB PlayStation 3 console would be at next weeks Tokyo Games Show.
Pachter believes that the long-rumoured announcement would not only allow Sony to counter Microsoft’s planned release of Halo 3 on September 25, but would encourage further sales growth for the remainder of 2007.
"There have been recent rumours about a new 40GB PS3 sku planned for release prior to the holidays at a USD 399 price point, and other rumours about an impending PS2 price cut to USD 99”, observed Pachter.
"We think that both of these ideas have merit, and note that SCE president Kaz Hirai is the keynote speaker at next week’s Tokyo Game Show. If the rumours are true, we cannot think of a better forum for making such an announcement, given that the event is less than a week before the launch of archrival Microsoft’s Halo 3.”
"Should Sony cut prices, we think that continued strong industry sales are all but certain," he concluded.
Stay tuned to PSU for further developments as soon as the Tokyo Games Show opens next week.

Sounds good, but they should stick w/ 60 gb hd.
if sony does this than next year after all the hype dies down from halo 3, sony will without a doubt take the industry by storm, cuz face everybody wants a ps3, but there excuse of getting one is its too expensive, or theres no games out. with games coming out literally every two weeks on the ps3, and that price cut many people will shift over or go to their nearest gamestop.
Would be a great move. We know people are waiting for a price drop and at a competing price of $400 with a good amount of space to boot, they'd move consoles with such an announcement. This upcoming week would be perfect too.
I think the 40gig version will be perfect for the more casual gamer. So an announcement at the TGS will be perfect for holiday sales.
I'd love to see a 40GB ps3 for $399....then it would be a 20GB 360 $349 vs. a 40GB ps3 for $399...a whole new ball game!
I agree with $399 and release GAMES especially..........................
Right now We just need GAMES
if the 40gb goes at $399 how much will the 20gb be?
Whats the difference between the 20GB and 40GB versions? If its just the HDD size...I see the 40GB version going in the same direction as the 20GB version did...especially in the US. 60GB vs 20GB (extras and 40gigs difference), people greatly favoured the 60GB sku....now it will be 80GB vs 40GB (same extras and 40gigs deference). Yeah at the start it will be at $399 vs $599, but when its $399 vs $499....I see history repeating itself. They should just continue with the 60GB hdd imo.
Harddrives are cheaper (for now) to produce in 40GB increments...so a 60GB harddrive is no longer affordable (the 80GB harddrives prolly cost no more or possibly even less). That's why Sony is ditching the 20GB & 60GB...economically the 40GB & 80GB are no more expensive.
this would be great news ! but there is one problem ... there is no killer ps3 exclusive that will be released at the same time as halo !!!
that would be a great counter attack.
The funny thing about analysts, most the time I want to walk up to them and say "Thank you captian obvious"!...as I would think it would be common sense that 40 gig would be announced at TGS. I personally think a 40G and HOME announcement on when its slated to be out to the masses would be a big hit.
A good counter to Halo yes but the only issue is that HALO is HUGE and unless your giving away PS3's with GTA and FF bundled I don't know if its really going to derail it much. 500lb Gorilla so to speak.
@ blachaze.. There are no more 20 gigs.. At least in retail stores...
Has any of this man's predictions come true? I though analyst were supposed to have inside information or some sort of special insight. This sounds like a random forum members speculation about what sony should do.
i say f' more sku's. just lower the price of the 60gb. i bought one... its been almost a year. drop that price. apple did it in one month. all in order to sell 1 million iphones. time to drop it sony. i personally would like the price to drop for blu ray sake. and bundle movies with it. damn it i want transformers on blu ray.
20 gb is a Blu-ray Player note that. Anybody wanna sell their 20gig PS3
As for counter attack: October & November Games release should do it....
Microsoft made a mistake by releasing H@lo3 too early so, what's after that, think about it.
It will be a very short lived intro as the 80GB model with rumble & game pack in will sell at $499 and then drop to $399 (with or without game pack in) once the 120GB model is introduced sometime at the tail end of the US Summer. I understand there is a lot of pressure to drop the price to limit the impact of Halo but I think the 40GB idea is silly for two reasons:
(1) Introducing a 40GB model to hit the $399 before Christmas is risky as It could lead to inventory problems if they are unsold when the 80GB model is due to drop in price. - Id suggest Sony pull out of the Heavenly Swords bundle and instead just drop the price of the 80GB model now.
(2) People want games more than anything and I dont mean they want a game bundled - I mean a good selection. In the lead up to Christmas Xbox 360 looks good but I reckon the PC is looking even better. PC has Bioshock and will be getting Crysis, Call of Duty 4, Jericho, Fury, Escape from Paradise City ,Juiced 2, Gears of War, QuakeWars, World in Conflict, Orange Box, Thrillville, Heavy Duty, Final Fantasy XI, Blacksite Area 51, The Club, FEAR Perseus, Cryostasis and a swag of others - all before Christmas. I think its obvious that the publishers all flocking to Wii is going to start a flood on that platform early 2008 with Wii games coming by the daily dozen so I dont think a temporary 40GB hard drive is going counter the lack of games on PS3 over the next 6 months. Yes we need a good price drop absolutely but what we need more is a truck load of excellent PS3 games like ....now. I'm seriously hoping that Sony has planned ahead and has quietly built up a secret release line up that can at least match the competitors come Christmas. Otherwise what has been announced todate will be like pissing in the wind...
Could be cool if Sony goes with a 40gb PS3 for 400.
By far the cheapest BLU-RAY player and an affordable game system. Nice....
I was just thinking - Sony should have really tried to hold onto assassins creed as a PS3 exclusive. That game if promoted enough could have helped reduce the impact of Halo.
I just dont understand Sony.???
i think that is rather smart of sony ps2 still hot seller round the world and cheaper ps3 is a good idea looking good just have to wait till ps2 is 59.99$ and ps3 is 299.99$ electronic prices dont go up they go down
I made a forum about this before it was posted and everyone told me to shut up... And who cares... WOW!!!
psn id: gingo... both of these would be a great way to combat Halo 3 but i doubt if the 40 gig will come out soon enough
I am a Sony fanboy, and evey I can tell that there is nothing logical that Sony can do to counter Halo 3, that wouldn't put them in a critical state. They would have to do an extreme price drop bundled with HS with new rumble controller and promise with proof that FF7 would be releasing next month. And release firmware 2.0 with ingame XMB, the ability to play songs during gameplay and support for all video formats. Now the chances of that happing by the 25th of this month is what Sony has of ever countering Halo 3. The install base and losers out there are too many to be denied at this monent. Cause everyone know Mistress Chief is to MS xbox what Mario is to Nintendo (everything). All we need is our own good games and we will be straight.
THERE IS NO 40GB! It was a RUMOR started by and bad M$ "prediction!"
Come On Now A PS3 can't Touch Halo 3.
Why should it touch Halo 3 when it clearly owns it!!! PS3, it's in the box!