Video game systems could be significantly cheaper this holiday season.
A new analyst's report from MKM Partners predicts Sony and Microsoft will both cut prices on the PlayStation 3 and Xbox 360, respectively – and Nintendo may still surprise customers by reducing the price of the Wii.
Sony has long been expected to cut the price of the PS3. At $499 for the top-line model, it is the most expensive gaming system on the market
and sales have declined on a year-over-year basis for seven consecutive months.
Microsoft, which cut the price of its low-end Xbox 360 model last year to $199, may be forced to react if Sony's cuts are aggressive enough. Handler says the company will not be the first to initiate cuts, as its larger installed base, lower price and relatively steady sales put it in a position of strength.