Analysts: Xbox 360 price drop for US, more console war theories

Analysts predict Xbox 360 price drop for US as well - Image 1The Xbox 360 price drop in Europe may be taking the console wars for another spin. Analysts surmise that Microsoft will also introduce the price drop in the U.S., so that the console will get the drop on both the PS3 and the Wii. Follow the “read more” link below for the details.

Analysts predict Xbox 360 price drop for US as well - Image 1

The recent Xbox 360 price drop in Europe got analysts in a tizzy over what’s in store for the console wars now, saying that Microsoft will get an advantage over the competition. Analysts are now surmising that the price drop may also be headed to the U.S.

Wedbush Morgan analyst Michael Pachter speculates that the U.S. price cut will be introduced before Christmas. He singles out the Xbox 360 Arcade, saying that Microsoft would probably drop its price by at least US$ 50, making the SKU cheaper than the Wii.

However, while Pachter is confident that the 360 can hold its own until the holidays, he does add that the PlayStation 3 is likely to pick up in sales due to the market’s call for Blu-ray. But then this may be all the more reason the U.S. price cut may happen:

I’m pretty confident that they will maintain a spread between the 360 and the PS3, and think that [Microsoft is] proud enough to care if the PS3 outsells the 360 consistently.

Colin Sebastian, an analyst from Lazard Capital Markets, also predicts a price cut for the Xbox 360 in the US. He also expects that, along with the price cut, Microsoft will introduce a new Xbox 360 SKU with a larger hard drive (perhaps he means the rumored 60 GB SKU?).

Sebastian goes on to say that the PlayStation 3 may also introduce a price cut, depending on how well the market takes to a cheaper Xbox 360 (if Microsoft chooses to introduce one): “They may be left with little choice if pricing continues to limit market share.”

As for the Wii… well, no one seems at all worried for the Nintendo platform even with all the talk about price cuts. “I think the Wii success has more to do with the gaming experience than the price point,” says Sebastian, echoing Jesse Divnich‘s earlier sentiments.


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