Pachter adds that the current "slim" PSP-3000 is more expensive to build but sells for significantly less.
"I'm sorry to say it, I don't want to get bad fan mail from the Sony fanboys, but Sony is ripping off the consumer until they sell a couple of million," says Pachter.
"Disc assembly for UMD costs more than 16GB of Flash does," he notes. "So this new device doesn't cost them as much to make as the PSP-3000 and they've jacked the price up USD 80. And if consumers don't buy it then the price is going to come down. They're making a lot more money on the PSP Go than the PSP-3000."
Pachter also added that he expects digital delivery methods to become much more mainstream now that console makers are behind the move.
"PSP Go is a game changer for digital delivery and yet they're still going to support the PSP-3000, they've got to keep the retailers happy.
"This year's show is 'packaged goods are going away'. Half of all gaming purchases ten years from now are going to be digital. You can see it coming for the first time ever, the console manufacturers are behind it," he concluded.