Michael Pachter
Michael Pachter
Michael Pachter is a video game, social media, digital media and electronics analyst with Wedbush Securities. He is also the Head of Research for the Private Shares Group, a Wedbush division which focuses on companies which have not yet gone public such as Facebookand Twitter. Pachter has an MBA & two law degrees. Pachter worked for 16 years at Arco where he was Arco's director of strategic planning until mid-1998...
analogy buy limit pc reason success
It will limit the success if they're not materially better than the current-generation games. The analogy is, do you buy a new PC if you don't have a reason to? You just don't do it.
build business clearly
They clearly aren't in the big leagues. They're back in the minors now and we'll see if they can build the business back up.
along company continues expect generating invest large losses throughout
The company continues to invest in its future, generating large losses along the way, and we expect this to continue throughout 2006.
decision earlier
The earlier movers aren't making a decision between the two.
business close cushion edge giving hesitate plays themselves trip weather
I think they are very close to the edge with the banks. If the business plays out the way I think it will play out, they won't trip the covenants. I think they are not giving themselves enough cushion to weather a downturn and it makes me hesitate in recommending the stock.
christmas november
I think they are being appropriately conservative about Christmas because it's November 1.
million number production ramp start zero
The number of units is a manufacturing constraint. You can't start production from zero and ramp to a million a week.
number
The number of units is a manufacturing constraint,
came
I don't know where he came up with 20 million,
believe expect november rebound recent sales weakness
We do not believe that recent weakness will persist, and expect a sales rebound in November and December.
buy december question wait
The question is, How many of those who didn't buy a 360 in December will now wait for the Sony? Some will.
bigger cheap content deal discount game guts hidden nobody people sexual stock
Nobody at Take-Two will have the guts to put any hidden sexual content in any game so people are making a bigger deal out of this than is there, ... At the end of the day, the stock is really cheap and the discount makes no sense.
believe choose compared console costs cut discount dramatic expect forecasts generation hardware higher itself last later lift lower million model next november price production reducing respond sales smaller software sony time xbox year
We expect a price cut for the PS2 later this year. We believe that Sony will respond to Microsoft's introduction of its next generation console with a cut from $149 to $99 some time before the November 22 Xbox 360 launch, ... We think that Sony has positioned itself to lower price by reducing the production costs of its console when it redesigned the box to a smaller format... Should Sony choose to discount the PS2 to $129 or even $99, we would expect a dramatic lift in PS2 hardware sales, and a corresponding lift in PS2 software sales. Our model forecasts that Sony PS2 hardware sales will be 1.8 million units higher this year compared to last year.
believe microsoft million people relatively shipped xbox
There are 5 million people who really believe they are getting an Xbox 360 relatively soon, by February. Microsoft has shipped 500,000 units, so 4.5 million people are doing nothing. That's enough to just kill Christmas.