Michael Pachter predicts price drops on Xbox 360, PS3 imminent

Will Wedbush Morgan analyst Michael Pachter‘s predictions of a price drop for the Xbox 360 and PlayStation 3 prove to be true? Well, he did support his statements in the last Electronic Gaming Summit. To find out what he had to say, head on over to the full article

While some people may not necessary agree with Wedbush Morgan analyst Michael Pachter‘s predictions, even his detractors would admit that he makes a couple of good ones every so often.

Pachter’s recent report gave out a couple of predictions at the Electronic Gaming Summit which detailed a systematic price drop for both the Xbox 360 and PlayStation 3 year on year to keep the industry growing. In fact, this year alone, he expects both consoles to drop by US$ 50 during the holiday season.

According to his report, video game sales will be experiencing a slowdown over the next three years. He said that while the video game industry will see a 19 percent growth spurt in the U.S. and a 20 percent jump in Europe this year, growth will drop by 16 to 18 percent the next year unless consoles drop by US$ 100.

He added that in 2010, growth will slow to 10 percent and seven percent unless consoles drop by a whopping US$ 150. Finally, he ended by saying that industry will flatline by the year 2011 unless a new console is introduced by then.

We’re not sure how he came up with his data, so it might be a bit early to be making sweeping statements such as this since it implies that the consoles will be obsolete in a scant six years. We’re going to have to wait and see and if his predictions push through.

Via Kotaku