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Monday, December 7, 2009

Pachter Is At It Again

Michael Pachter is now declaring that the XBox 360 will have another price drop next year.  Here's why that's so irresponsible:

1)  If Pachter starts it, other analysts will pick up on it and start repeating it.  That filters down, and eventually you have sales frozen because people are waiting for a price cut that Microsoft wasn't planning on, which leads to...

2)  A price cut happens out of necessity, making Pachter's declaration a self-fulfilling prophecy.

I know that analysis is what the guy does, so I can't fault him for it too badly.  Making a prediction based on numbers, trends and history is his job.  Still, it's a little irresponsible.