Most industry pundits would tell you that the PlayStation 3 has been trailing the competition largely because of its hefty price tag. Pachter, however, believes the $399 price point will finally come down to $299 in just a few months. Microsoft is likely to drop its price on the 360 as well.
"Once the PS3 is at a more affordable price point (we expect a cut to $299 in April), we think that sales of that device will once again begin to grow. We expect another cut in price for the Xbox 360, with the feature-laden Pro model likely to come down in price to $249 at or before this year's E3 show in June. We expect Nintendo to maintain Wii pricing at $249 until the company sees signs that demand is slowing, which means a price cut may not happen until late in the year, if at all," Pachter said.