Wedbush Morgan Securities Analyst Michael Pachter has stated that he expects the Xbox 360 to have its price cut later in the year. In his post-E3 summary, he stated that “The company did not cut the price of its Xbox 360 despite our speculation that Microsoft would feel compelled to do so after Sony's price cut. It appears to us that the company is trying to deal effectively with its warranty issues, and was concerned that a price cut so soon after the warranty announcement might send an unintended signal that discounts were required to move hardware. We continue to believe that a price cut is appropriate, and expect cuts later in the year.”

It sounds like a reasonable bet. Although Sony’s PS3 got a price cut in the US and a new bundle in the UK, it’s still significantly more expensive than the Xbox 360. Given that Microsoft just paid out rather a lot on extending Xbox 360 warranties, the company probably isn’t keen to cut prices of its console to compete. A Christmas price cut makes sense though: there’s a heck of a lot of software coming out towards the end of the year, with games like Stranglehold, Assasin’s Creed, GTA IV and, of course, Halo 3.

Source:
Gamedaily

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