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Expect price cut and motion controller from Microsoft - Greenwald

Analyst says Microsoft needs to recapture consumers lost to Wii and PS3 in Europe

Analyst Todd Greenwald has backed current rumours doing the rounds that Microsoft will unveil a new motion sensitive controller for the Xbox 360 at E3.

He also said that it's expected Microsoft will slash USD 50 off the price of a Premium Xbox 360 this weekend, ahead of the annual industry showcase.

"The Xbox 360 price cut has essentially been confirmed by leaks from retailers at this point. We expect a USD 50 price cut on the Xbox 360 this weekend (from USD 349 to USD 299), prior to Microsoft's keynote on Monday morning," said the Signal Hill expert.

"We think the 360 has lost significant momentum to both the Wii and PS3, especially in Europe, and is in need of both a price cut and new features to bring in mainstream gamers beyond the Halo, Call of Duty, GTA crowd.

"Hopefully, Microsoft will have something else up its sleeve, such as a new motion-enabled controller (to better compete with the Wii)," he added.

He also expects Nintendo will announce something for the core gamers at E3 that may incorporate a new peripheral, similar to last year's introduction of the Balance Board for the Wii.

Sony is not expected to make an announcement regarding hardware prices, said Greenwald, as it continues to focus on profitability.

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