Kaufman Bros. analyst Todd Mitchell thinks the huge early demand for Microsoft's (MSFT) new Halo 3 game for the Xbox 360 should boost sales of the hardware platform through the holiday season. He has increased his estimate on Xbox 360 units for this year to 17.1 million, from 16.5 million. At the same time, Mitchell drops his estimate on Sony (SNE) Playstation 3 units to 10.3 million from 13.5 million. He also ups his estimate on Nintendo Wii console sales to 19.8 million, from 16.3 million.
Mitchell thinks Sony faces "a worse case scenario" for the holidays. The PS3, he says, is "too expensive and lacks compelling content." He thinks Sony will have to lower the price of the PS3 "to stay in the game."