Xbox 360 Price Cut Expected

Following confirmation of a PlayStation 3 price cut, several industry analysts are indicating they are expecting Microsoft to follow suit, despite the Xbox 360's sales lead.

Michael Pachter of Wedbush Morgan Securities was the most optimistic in his predictions, saying that he expects Microsoft to drop the price of the Xbox 360 Elite from $479 to $399, the Premium from $399 to $349 and the Core from $299 to $249.

In his note to investors Pachter mentioned "While the Elite has a 120GB hard drive and HDMI cables, it does not have WiFi built in nor does it offer Blu-ray playback capability, with both standard features for the PS3. Similarly, 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"

Other analysts are also expecting a price drop on one or more SKUs, between $50 and $100. According to Pachter, Microsoft will be announcing the price drop at their Tuesday night E3 press conference. Shacknews will be covering the event live.