Having brought you news of the pricing difficulties that Sony are having with the PS3 a few days ago, a securities analyst has stepped in to say that prices will fall, and within 12 months!

Wedbush Morgan Securities analyst Michael Pachter predicts that the PS3 will sell out in Europe by May, and a price cut of more than EUR 150 will come inside a year.

"I'm actually surprised that consoles are not priced more like other consumer electronics, with early movers charged a bunch and the mass market charged less", Pachter said, using the example of DVD players, which are now available for much lower prices than when they first launched.

He continued to debate whether the high price will impact sales, stating, "The PS3 can command £425 from the hardcore and I think you'll see price cuts a year from now, probably to £300".

Pachter reckons the PS3 will sell out double quick time in the UK with the rest of Europe following.

"There will be a few more games by then, with several great games announced for release in May and beyond, so I expect a full sellout by the end of April", he said.

He went on to say that being beaten to the post both by Wii and Xbox360 won’t dampen the PS3’s performance.

"March is not too late, given Sony's production problems and only 800,000 Wiis sold in Europe last quarter", he stated.

"My guess is that the Wii will be up to near 1.6-2 million by March 23, but that is far from an insurmountable head start."

Pachter also commented on the PS3’s graphics and that the cost of using one in conjunction with a 1080p monitor is "worth every penny".

"I think that games like Gears of War on the 360 look every bit as good, but given that PS3 game development was rushed, I fully expect next year's games to look better on the PS3", Pachter summed up.

>> Link - Official Site/Wedbush Morgan
>> Raed - SCEA boss talks of PS3 pricing difficulties