All signs are pointing to a major Xbox 360 price drop in the days leading up to E3. Leaked retailer scans
show a new lower price for Microsoft's home console: a drop of $50 from $350 to $300. When this price drop happens, there will be a $100 price gap between the Xbox 360 and the cheapest PS3 model (40GB).
A similar price cut for PS3 may be unlikely, consider Sony's recent focus on profitability. Already, the cheapest PS3 includes wi-fi, a Blu-ray drive, and free access to PSN. Sony must do a better job at emphasizing the value of the PS3, in spite of its higher cost of entry. "The gap of $100 may be a fair price to pay for [PS3's] built-in wireless Internet connectivity and Blu-ray, but [Sony's] done a terrible job of explaining that to consumers," popular analyst Michael Pachter noted to Next-Gen
PS3 won last month's NPD figures, and is likely to win again this month, thanks to the release of Metal Gear Solid 4
. Undoubtedly, Sony will pay close attention in the following months. If their momentum begins to slow, Sony may follow Microsoft's footsteps. "In the event of decelerating PS3 unit sales trends, we believe Sony might rethink its strategy on PS3 pricing, but for now, the hope is that a stronger software lineup as opposed to price concessions will drive hardware adoption," Colin Sebastian said. For the full analysis, visit Next-Gen.