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Microsoft to cut US Xbox 360 price at E3, says analyst

Jesse Divnich believes action is likely as he predicts the PS3 to continue to outpace its rival

EEDAR analyst Jesse Divnich, in a note to investors following the release of NPD sales data for May, has stated his belief that Microsoft will cut the price of the Xbox 360 in the US at E3 this year.

"With E3 around the corner, we can expect Microsoft to make some type of announcement regarding a hardware price cut, the introductory of a new hardware SKU with new features, or both," he said.

And he added that if a price cut did happen he would expect Sony to follow suit within a two-month window.

Additionally Divnich expects the PlayStation 3 to continue to outpace the Xbox 360 in terms of sales, as in May, thanks to the release of Metal Gear Solid 4 - a much-anticipated exclusive to the Sony platform.

Meanwhile he notes that Nintendo seems to be doing a better job of meeting demand for the Wii console in the US, with the decline in gray market prices from a 40 per cent mark-up to 10 per cent - although supply for Wii Fit continues to be a problem, with gray market prices for that title averaging around a 62 per cent mark-up.