360 price cut makes sense, says Pachter

By Patrick Garratt, Friday, 27 June 2008 07:31 GMT

Speaking to GamesIndustry, Wedbush Morgan’s Michael Pachter has yet again stated a case for an imminent Xbox 360 price cut in the US.

“Microsoft has historically been a price taker – meaning that they typically wait for Sony to cut first,” he said.

“However, they haven’t been in the position of having a cost advantage before, as they do now.

“Putting Microsoft’s cost advantage together with Sony’s reticence to lose more money, it’s easy to conclude that you will see Microsoft reverse course and be a price leader.”

Pachter said he believes Sony will respond if Microsoft does decide to drop.

“Sony will have to respond if they see 360 sales increase significantly – say to over 300,000 a month in the US,” he said.

“I believe that every 360 sold is one less potential PS3 sold – and vice versa – and expect Sony to behave rationally.”

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