http://www.computerandvideogames.com/article.php?id=257003

Plummet?

"Microsoft is competing in the context of lower prices for both PS3 and Wii last September, and until it cuts price itself, will likely see sales dip a small bit year-over-year.

"I don't think that this is a problem for them, as long as sales remain near current levels; when they drop by more than 10 - 20%, we'll see a price cut to spur sales back to the current level," he said.

"Microsoft keeps giving us more for our $299, but the price is stubbornly at $299, and has been for over two years. I think that there are many people waiting for a price drop, and expect one next year."

ok, so which is it?  Plummet or dip a small bit?  or are they the same thing?

Up over 8% YOY so far

I still love you Pachter!!!!

 Patcher lol

Xbox 360 sales will be HUGE... Pachter said so.

Totally confused, 360 entry price has been $199 for 2 years now? 

I don't see the word "plummet" in his statement...

The system is selling well now. It will sell very will without a price cut due to halo reach, COD black ops and Kinect crowd.

So price cut may be something they use in early 2011. They can sell a couple million consoles more if they cut price, but they have a perfectly sustainable and profitable business with the 360, they don't need to get more units out the door that they are alredy doing.

Personally, I see no reason for MS to drop prices on any of their SKUs until sales stagnate. I believe there's been enough hype behind Kinect, which regardless of whether it delivers in reality, will be bought in numbers high enough during the holidays to result in a near 100% sell through on inventory.

You don't cut prices when you're selling virtually all of your current product production. It's common sense.

I would however, expect to see maybe a $50 price drop on Kinect in early 2011, almost definitely if the consumer reaction of the initial wave of Kinect adoptees turns out to be luke warm (that whole reality of what you bought vs. what you thought you were buying). If word of mouth is so-so, Kinect won't continue selling at the same rates without added incentive (price cut).

In the mean time, MS wants to continue selling as many Xboxes at $299 and as many Kinect kits at $150 as possible. Nobody actually thinks for a second if the 360S continued to sell the way that it currently is following the hardware update (unrealistic of course) that MS would randomly decide to "just cut the price anyway." At least I would hope not.

HOW! does this guy have a job is what I want to know, does he even know what hes talking about half the time?

Very good arguments ; )!