EEDAR analyst Jesse Divnich today said that an Xbox 360 price cut or model change is very likely to take place by the E3 gaming expo next month. The researcher doesn't point to specific sources but is confident that Microsoft will either drop prices on the consoles at the event, introduce at least one new version, or combine the two in a single update. It's unknown whether Sony will follow suit with the PlayStation 3, though the company is predicted to respond to any Microsoft cuts with one of its own within two months. What price cuts are likely to come are uncertain. Microsoft currently prices its basic Xbox 360 Arcade system at $280, while offering its Xbox 360 Pro at $350 and its Elite model at $450. Sony is currently selling a 40GB PS3 for $400 and an 80GB Metal Gear Solid 4bundle at $500, giving Microsoft targets for the Elite and any other high-end models. Nintendo's Wii currently undercuts the Xbox 360 Arcade with a $250 price.
Divnich also offers mixed views of Sony's near future. Metal Gear is more likely to be a catalyst for PS3 sales because of its exclusive nature, he says. The analyst warns however that no such title exists for the PSP handheld and that the portable system is likely to continue a recent year-over-year decline as gamers lose interest in the device.
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