Analysts Predict PlayStation 3 Price Cuts in 2009

Although it’s not yet official, most analysts expect the NPD Group’s January video-game console report to show Nintendo’s Wii game console as the clear winner for December, with the Xbox 360 a distant second.

Analysts are also predicting that even as Sony’s PlayStation 3 begins to gain some momentum, price cuts may be just around the corner as the once-leading console maker struggles to compete against its less-expensive competitors.

"We expect December {video-game] sales of $2.625 billion — up 10 percent compared to December 2007′s $2.39 billion. We expect next-generation software sales of $2.42 billion and current-generation software sales of $205 million," said Michael Patcher, an analyst at Wedbush Morgan. "Our forecast reflects growth of four percent year-over-year for Xbox 360 software, 71 percent growth for Wii software, and 48 percent growth for PS3 software."

Slashing Console Prices

In September, Microsoft cut the price of its three Xbox 360 models to $199, $299 and $399. Sony responded by increasing hard-drive sizes and maintaining its PS3 pricing at $399 and $499. In October, Microsoft countered with the launch of its holiday bundles with free games Sega Superstars Tennis for the Xbox Arcade, and LEGO Indiana Jones and Kung Fu Panda for the Xbox 360 Pro and Elite.

"We believe these moves increased hardware sales, and note that the bundled software is not included in NPD’s overall figures, so Xbox 360 software sales may show only a modest year-over-year increase," Patcher said. "Microsoft hardware sales have been up modestly over the last two months, due to a higher value proposition and by having its core model priced below $300, and we expect this trend to continue in December."

Once the PS3 is at a more affordable price point — Wedbush expects a cut to $299 in April — the company thinks sales will begin to grow. However,…

Source: Top Tech News