PS3, in North America, has been handily outsold by Xbox 360 in 2011. Microsoft has been building on its momentum since last year with the Kinect platform, but the recent PS3 price drop to $249 is clearly having an impact. The question is: will it be enough to top Xbox 360 during the holiday period? If Microsoft stands pat on price, then yes, says Wedbush analyst Michael Pachter.

In a soon to be published "Pachter's Podium" Q&A, the analyst called the holiday battle between the two high-definition consoles a "close call."

"IF Microsoft does nothing, I think PS3 will outsell Xbox 360," he told IndustryGamers. "However, my friends at Microsoft are extremely proud, and they absolutely refuse to tolerate the possibility that the PS3 will outsell the Xbox 360. I think they have the ads printed for the Xbox 360 price cut, and will drop them on us the instant they see PS3 sales greater than 360 sales."

He added, "In the meantime, I think we'll see a reduction in the price of the Xbox 360/Kinect bundles (similar to Wal-Mart's "goof" last weekend), and Microsoft will use that to keep the PS3 at bay until they decide whether to match price for the console only."

Microsoft has been in the driver's seat this year, but a price cut seems likely to us. What do you think? Is a 360 price drop needed?

http://www.industrygamers.com/news/ps3-will-outsell-xbox-360-this-holiday-if-microsoft-doesnt-cut-price---pachter/

Posted: Sep 01, 2011 9:40 am