Pachter says Xbox 360 price cuts will follow PS3’s own

 Following Sony‘s affirmation that it will drop the price of its high-end PlayStation 3 console’s retail price to US$ 499, Wedbush Morgan analyst Michael Pachter commented that a similar price cut is imminent for Microsoft‘s Xbox 360.

“The value proposition for the PS3 is increased at the new lower price point, putting increased pressure on Microsoft to cut the price of its Xbox 360,” he says. “The 80GB and 60GB PS3 models compare favorably to the 120GB and 20GB Xbox 360 models.”

Pachter predicts that the Core and Premium Xbox 360 models are likely to shed US$ 50 off while the top-level Xbox 360 Elite should go from US$ 479 to US$ 399. He also says that the below target shipping of Xbox 360s from last week indicates that Microsoft may be on to a move next up.

Microsoft, however, is still mum on the subject. A rep says “Microsoft has not made any announcements regarding a price cut on Xbox 360,” but Pachter expects confirmations to happen in the upcoming E3.

On a wider scale, analysts say that this move by Microsoft is geared towards the prevention of market loss to the PS3 in 2008. However, Pachter warns that the next fiscal year could signal a better period for Sony as the PS3’s HD-playing capabilities begin to catch on to consumers on a global spectrum.

Analyst Colin Sebastian of Lazard Capital Markets views the move by Sony as a positive one which will result in better reception coming from key markets. “We are encouraged by SonyÂ’s willingness to cut the PS3 retail price less than a year following launch as component and production costs have decreased somewhat,” he concludes.

Via Next-gen.BIZ

 Following Sony‘s affirmation that it will drop the price of its high-end PlayStation 3 console’s retail price to US$ 499, Wedbush Morgan analyst Michael Pachter commented that a similar price cut is imminent for Microsoft‘s Xbox 360.

“The value proposition for the PS3 is increased at the new lower price point, putting increased pressure on Microsoft to cut the price of its Xbox 360,” he says. “The 80GB and 60GB PS3 models compare favorably to the 120GB and 20GB Xbox 360 models.”

Pachter predicts that the Core and Premium Xbox 360 models are likely to shed US$ 50 off while the top-level Xbox 360 Elite should go from US$ 479 to US$ 399. He also says that the below target shipping of Xbox 360s from last week indicates that Microsoft may be on to a move next up.

Microsoft, however, is still mum on the subject. A rep says “Microsoft has not made any announcements regarding a price cut on Xbox 360,” but Pachter expects confirmations to happen in the upcoming E3.

On a wider scale, analysts say that this move by Microsoft is geared towards the prevention of market loss to the PS3 in 2008. However, Pachter warns that the next fiscal year could signal a better period for Sony as the PS3’s HD-playing capabilities begin to catch on to consumers on a global spectrum.

Analyst Colin Sebastian of Lazard Capital Markets views the move by Sony as a positive one which will result in better reception coming from key markets. “We are encouraged by SonyÂ’s willingness to cut the PS3 retail price less than a year following launch as component and production costs have decreased somewhat,” he concludes.

Via Next-gen.BIZ