Perhaps in response to Sony dropping
the price of the PlayStation 3, Wedbush Morgan Securities analyst Michael
Pachter said to investors on Monday that he believes that Microsoft will answer
with price cuts to all Xbox 360 models, reports Next-Gen.
"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. The 80GB and 60GB PS3 models compare favorably to the 120GB
and 20GB Xbox 360 models," said Pachter. "We think that the $499 PS3
compares quite favorably with the $399 Pro 360 model, which has only a 20GB
hard drive and no HDMI output."
"Because of this favorable comparison, we believe that
Microsoft is all but compelled to cut prices, and we think the price cuts will
come no later than at Microsoft’s Tuesday night press conference," added Pachter.
Pachter predicts that the $299 Core system will drop to
$249, the $399 Premium down to $349, and the $479 Elite will get the biggest
cut of all to $399.
The analyst also brought up Microsoft’s slight shortfall in
its goal to ship 12 million Xbox 360 consoles to retailers by June 30 – a target
missed by 400,000 units. Pachter said, "Last week, Microsoft announced a
slight Xbox 360 shipment shortfall (11.6 million units versus prior guidance of
12 million units through June 30), and we do not believe that the company is
prepared to allow Sony to erode its pricing advantage."
The price cuts to the Xbox 360, if true, will help distance
the Xbox 360 Elite model from the PlayStation 3. Both consoles feature HDMI
output – a big selling feature for those with HDTVs. Currently, the 60GB PlayStation
3 and Xbox 360 share the exact same
price point in the Canadian market.
quote: Pack in a game (s): The Wii has one. This/these could be casual games from XBLA, as long as they're free.
quote: It comes with Hexic in XBLA.
quote: people care about more than just price, they care about games as well, otherwise it would be easy to argue that the Gamecube should have beaten the PS2