Analyst Says Consoles Need Price Reductions by June
According to Wedbush analyst Michael Pachter, the Xbox 360, PlayStation 3, and Wii consoles are in need of a price reduction in order to stay profitable. The widely known analyst stated that currently, Microsoft has implemented the best pricing strategy for its line of consoles, and the Xbox 360 is bound to see yet another reduction soon, either by E3 in June or the upcoming 2011 holiday season. "In order to sustain a rebound to sales growth, we think it is imperative that the console manufacturers cut price," said Pachter. "We expect Microsoft to announce a price cut at this year's E3 Expo in June, and expect Nintendo and Sony to rapidly follow suit."
Pachter also said that the Wii has seen a noticeable decline in sales, mentioning its new competition in Move and Kinect, with the latter doing better commercially than Sony's motion gaming controller. The analyst's predictions cited a reduction of at least $50 for all three home consoles by the end of the year.
The key word here is "predictions." With no knowledge of how Microsoft, Sony, or Nintendo plan to move forward with their consoles, it is unclear whether gamers will actually see price cuts on any system. Additionally, the Kinect might be selling more units than the PlayStation Move, but there's no denying the potential of Sony's highly accurate motion controller. And while Wii sales have gone down, the 3DS could potentially rake in more cash for Nintendo.
We'll know for sure whether or not Xbox 360, PlayStation 3, and Wii price cuts are likely in the weeks leading up to E3 and, of course, the holiday season.