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Sony to slash PS3 price by 25%

'Within 12 months'

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Sony has yet to launch the PlayStation 3 in Europe but already one analyst is forecasting a first-year price cut which will see at least €150 knocked off the €599 launch price.

According to Wedbush Morgan Securities analyst Michael Pachter, cited by GamesIndustry.biz, the price cut will come within 12 months of the PS3's 23 March European launch, he believes.

"The PS3 can command £425 from the hardcore and I think you'll see price cuts a year from now, probably to £300," he said.

Delayed in September 2006 from a planned November 2006 launch, the PS3 will now debut in Europe and other territories that use the PAL TV standard on 23 March, Sony announced last week. Only the 60GB model will be offered at launch, though the 20GB version may appear later in the year, if it's in demand, Sony said. Or if the 60GB PS3 doesn't sell so well, might be a better way of putting it.

Sony said 1m consoles will be allocated for the launch. Pachter said he believes that stack of machines will have been sold by the end of April, a month or so after the launch. UK stocks will "quickly disappear" after launch, he forecast. Pre-ordering appears to be the name of the game, that suggests, just as it was with Nintendo's Wii launch in December 2006.

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