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Pachter also doesn't expect a next-gen Xbox announcement until 360's core model is priced below $200

E3 is right around the corner in June, and while Nintendo's Wii U is likely to grab the spotlight with no next-gen announcements planned from Microsoft and Sony, Nintendo's rivals could apply some pressure to the market with hardware price cuts. In fact, Wedbush Securities analyst Michael Pachter sees a PS3 price drop as a likely outcome at E3.

Pachter also believes that Microsoft will "consider" a price cut. The Xbox 360 has been outselling the PS3 in the US each month, but the sales appear to be gradually slowing.

"We expect hardware sales to rebound once price cuts are implemented, but expect a recurrence of the dip next holiday, partially buffered by some modest contribution from the introduction of the PS Vita in February and the Wii U later this year. Recent slowing of Xbox 360 hardware sales could cause Microsoft to consider a price cut by E3. We do not expect an announcement of a next- generation console from Microsoft until the Xbox 360 core model is priced below $200, likely around this time next year. PS3 hardware sales should continue to lag those of the Xbox 360, and we expect sales to trend downward by 10 - 20% monthly, until Sony cuts prices once again, likely at E3," he wrote.

Pachter's price cut prognostications come as part of a Wedbush NPD preview - NPD is expected to release March sales data this Thursday. It won't be pretty, according to Wedbush estimates. March is likely to represent the fourth consecutive monthly decline, down 23% to $565 million in software sales, despite a big launch for EA's Mass Effect 3, which shipped more than 3.5 million copies during its first week.

April may be another bad month for US games retail, but May could finally see a return to positive gains, as the market will receive Activision Blizzard's Diablo III, Take-Two's Max Payne 3, and Ubisoft's Ghost Recon: Future Soldier.

http://www.gamesindustry.biz/articles/2012-04-09-ps3-sales-continue-to-lag-xbox-price-cut-likely-by-e3-says-pachter

Before E3? Not happening.

Silly silly Pachter.

Worldwide > America

Pachter.

i see price cuts from Sony and MS as likely, but i'm not so sure Kaz will do it at this point giving PS3 its first loss to the 360 since when?

If both Microsoft and Sony don't cut console prices before Wii U launch, they're missing their only opportunity to compete for strong holiday [hardware] sales.  That is, of course, unless GTA V remains exclusive to PS3 and X360.

Isn't there a flaw in his satement?

He says:

 And then goes to say

If Microsoft does a price cut it will probably be $50, puting the Xbox 360 bellow the $200 mark.

...

Oh, I get it! He's covering all bases so it Microsoft doesn't announce the new console he can say "I told you they wouldn't ", but if they announce it he can also say "They have done what we expected".

Nice move Pachter, nice move.

I think a price cut in America is needed, but not worldwide. However the PS3 is facing a similar situation in USA that 360 is facing in Japan.

It's too late for anything major to change the landscape now. The 360 is going to be seven and the PS3 is going to be six. They have lived their lives to what they were going to.

The fact that the PS3 is cheaper than the 360 now is unbelievable. Started $200 more expensive (excluding the $500 reject 20gb) and is now $50 cheaper. Still can't outsell the 360. That just shows how much money means to us Americans.

If the PS3 had games at launch that people wanted instead of Genji, Gundam and terrible ports things might have been different. But it didn't. Live and learn. At least now that Kaz is in charge. Howard was not able to live and learn.

He just sucked it up.

Awwwww! He's been gone for so long!

Pachter, WHY U NO LEAVE US?!

I think he considers the 250gb the "core model"