Industry analyst Michael Pachter believes that the Xbox 360 will be receiving a $50 price cut as part of Microsoft’s E3 2011 presentation. Furthermore, Pachter believes that in order to stay competitive with Microsoft, both Sony and Nintendo will lower the price on their consoles.
The current console cycle has seen its share of price cuts, but more often new SKUs have come in at different price points. In actuality, these three consoles haven’t, for the past 18 months, really needed a price cut in order to facilitate strong sales, as each — especially the Wii — have been going strong without them.
Now, with both Kinect and Move on the market, Microsoft and Sony are going to want to find a way to make those products seem more casual consumer friendly. That isn’t to say that consumers have been ignoring the Move or the Kinect (Kinect has seen some very high sales numbers), but those peripherals, when bundled with their respective console, need to come in at a much more affordable price.
“Demand for the Wii appears to us to be fading, and we think that a price cut is long overdue. However, this time around, Sony has a motion control scheme of its own with Move, which is off to a very tepid start. We think that Move’s lack of traction in the marketplace is due mostly to the high price point for a system bundle ($399).”
In Pachter’s opinion, it really is Microsoft who holds ultimate control over this price cut situation. If they announce a Kinect bundle that comes in somewhere around the $300 mark, it would behoove the other two companies to cut prices to follow suit — Sony to stay competitive as a higher end console, and Nintendo to be that lower-priced motion control option.
Whether June does bring a console price cut announcement, or even perhaps the announcement of a new console altogether (we’re looking at you Nintendo), know that Game Rant will be on hand at E3 2011 to deliver all the news.
Do you think that all three major consoles will see price cuts before the year is up? With Kinect already showing strong sales, do you agree that it is Microsoft who needs to set the precedent for this price cut?