360 needs price cut to outsell PS3 this holiday – analyst

Wedbush analyst Michael Pachter has offered up his (always sought-after) opinion on Microsoft’s position with the Xbox 360 following the PS3 price cut last month. He believes that the company needs to lower its own price if it is to outsell Sony this holiday season.

“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.”

“In the meantime,” he added, “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 have been insistent that a price drop won’t be happening any time soon, not that they’d alert customers to an impending drop before it happens. There’s still a long way to go before we get stuck into the real holiday season; how will Microsoft respond?