Cowan and Company analyst Doug Creutz believes price cuts for the three consoles won’t be enough to stimulate US sales in this economic climate. ”We are concerned that, given pressures on the consumer, price cuts may not have the stimulative impact to hardware and software sales that they have had in the past,” Creutz says, claiming consumers are already suffering from other financial stresses. Despite the bleak news, Creutz still believes that a price cut is imminent. He predicts a $100 drop for the PlayStation 3, a $50 drop for the Wii, and the Xbox 360 Elite price dropping to $300. If blurry cell phone cameras are to be believed, these claims are less prediction and more confirmation of what we already know.

The software sales “predictions” are equally bleak, with an expected 23 percent decline in July sales compared to the same time period last year. Creutz is optimistic that September will be a much better month for software, but with Guitar Hero 5 and Halo 3: ODST coming out that month, you’d have to be blind not to see the connection.