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Microsoft to slash price of Xbox 360 - Pachter

Following Sony's USD 100 price cut announcement, leading industry analyst Michael Pachter has gone on record predicting that Microsoft will quickly follow its rivals' lead and slash prices on all Xbox 360 models.

Following Sony's USD 100 price cut announcement, leading industry analyst Michael Pachter has gone on record predicting that Microsoft will quickly follow its rivals' lead and slash prices on all Xbox 360 models.

The Wedbush Morgan analyst expects the recently released Xbox 360 Elite to go from USD 479 to USD 399, the Premium model to see a drop from USD 399 to USD 349 and the Core system to be reduced from USD 299 to USD 249.

"We expect Microsoft to follow with a price cut of its own," said Pachter.

"Last week, Microsoft announced a slight Xbox 360 shipment shortfall and we do not believe that the company is prepared to allow Sony to erode its pricing advantage.

"We think that the console manufacturers will continue to cut price as their production costs come down, and expect sales to ramp significantly this holiday season," he added.

The company does not expect Nintendo to reduce the price of the Wii or DS, "as sales for both are still very strong and are anticipated to remain so through the end of the year."

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Matt Martin avatar
Matt Martin joined GamesIndustry in 2006 and was made editor of the site in 2008. With over ten years experience in journalism, he has written for multiple trade, consumer, contract and business-to-business publications in the games, retail and technology sectors.
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