Analyst Predicts Xbox Price Drop

Market analysts have predicted that Microsoft will reduce the price of its upcoming Xbox console to increase its software sales.

Analyst at Wedbush Morgan, Michael Patcher, has claimed that the company will drop the cost price of its upcoming Xbox 360 by at least $50 in spring next year, gaming news site Escapist Magazine reports.

“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,” Patcher told tech news website Industry Gamers.

According to Patcher, the anticipated move will be in order to attract consumers to its Xbox 360 and the upcoming Xbox Kinect, and may increase overall sales up to five per cent.

Japanese gaming giant Nintendo has faced a huge drop in its year-on-year games console sales figures, which may force Microsoft to take the leap and slash Xbox prices to maintain sales.