Michael Pachter, an analyst for Wedbush Morgan, cautioned that the launch of the successor to the Xbox does not necessarily mark the beginning of strong next-generation growth. “Consumer reaction to the Xbox 360 launch may disappoint,” he warned.
“We think that many investors have misinterpreted the launch of the Xbox 360 as the beginning of the next generation, and expect rapid sales growth in 2006. In contrast, we expect the launch of Sony’s PS3 (sometime in 2006) to mark the beginning of the next cycle, and think that rapid sales growth will not materialize until 2007.”
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