Michael Pachter has predicted that Microsoft will be the next platform holder to cut the price of its hardware.
We estimate that a $50 console price cut across the board will impact software sales by a positive five per cent, and we expect Microsoft to lead with a cut some time in spring 2011,” he told Industry Gamers.
The prediction comes despite the challenges faced by rival Nintendo, whose Wii and DS have both experienced large year-on-year sales drops. The platform holder is now readying for the release of its newest console, the 3DS, early next year.
We think that Nintendo's 3DS, scheduled for March release in the US and Europe, has the potential to reinvigorate packaged product sales,” he added.
Similarly, we think that Kinect and Move have the potential to drive console sales, broadening the installed base and giving new purchasers a reason to buy a greater number of packaged goods.”