Console prices to drop at Christmas?

Wedbush Morgan analyst Michael Pachter expects both the Xbox 360 and PS3 to shed $50 for the holiday shopping season, according to reports on his speech at the Electronic Gaming Summit.

Originally reported byKotaku, Pachter also said that even with the price drops it would still be difficult to match last year's Christmas sales numbers.

While Pachter is reported as expecting 19% industry growth in the US and 20% in Europe this year, that number will dip to 16% and 18% respectively in the following year unless each console drops another $100 off its price tag.

Further price reductions would have to occur in 2010 to stop growth from declining to 10% and 7% in each respective market.

Unless a new console is released, Pachter expects industry growth to become flat by 2011.

Courtesy of Next Generation.

May 21, 2008