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Publishers to slash prices in the US?

Analyst note suggests that reductions are imminent from EA and Activision

Lazard Capital Markets analyst Colin Sebastian believes that software publishers in the US may be planning to cut wholesale pricing of games as the industry enters a "seasonally slower selling period".

Based on retail price checks, he suggests that Electronic Arts will lead the way by slashing USD 10 from its EA Sports franchise titles, as well as Mirror's Edge, Dead Space, Command and Conquer and Monopoly, while Activision's Guitar Hero may also follow suit.

However, he doesn't believe that this will prevent publishers from releasing new titles this year at the top price points, and it doesn't yet herald the start of a price war.

Meanwhile Sebastian has noted his view that estimates for Electronic Arts' revenue and earnings per share, of USD 4.75 billion and USD 1.16 respectively, are "aggressive" - but recommends holding shares for now.

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