360 cut to boost sales by 20%, says Pachter
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Speaking here, Wedbush Morgan's Michael Pachter has predicted that the now-announced European Xbox 360 price cut will boost sales of the console by 20 percent in the region.
"Price elasticity of demand is an economic concept that says demand goes up as price comes down. I would imagine that demand will increase by 20 per cent or so, and we'll see sales increase by this amount over the next few months," he said.
Pachter's optimism was dampened, however, by the practical certainty of a PS3 price drop in the year's back-half.
"If the price cut were in a vacuum, I suppose it would make a difference, but it's likely Sony will match the cut sometime later this year," he added.