Pachter: Price Cut Needed for Xbox 360

[AMNYA]

Michael Pachter has been on quite the negative kick of late, and it looks like that trend is continuing. This time, he's setting his gaze on the Xbox 360 which, despite being the top-selling console for the month of June, only was so because of the original model's price cut after the release of the Slim model.
According to Pachter, the year-over-year sales of the console paint a worse picture, predicting Microsoft will have to make a choice in the near future: cut price, or plummet.

"Microsoft keeps giving us more for our $299, but the price is stubbornly at $299, and has been for over two years. I think that there are many people waiting for a price drop, and expect one next year," said Pachter in an interview with CVG.
He did say, however, that sales could be revived through the release of the upcoming Kinect bundle, squarely set at the Wii-only family. "I also think that the Kinect bundle is a great value at holiday, albeit at the stale $299 price point," said Pachter.

While a price cut would be welcome, certainly, it's not the only thing Microsoft needs at this point. Exclusive titles are coming few and far between, especially those that are spurring new people to purchase the console. Games like Halo: Reach, Fable III, and Gears of War 3 appeal to an audience that already has an Xbox 360 in their homes, and likely have no interest in upgrading to a fancy new slim model either. While the previous month's sales spike is a nice move for the console, expect it to dwindle as older models begin to sell out.

Kinect is the tipping point. Microsoft is taking a huge risk on the device, trying to obtain the same market Nintendo has been so successful in appealing to. While many have already put their feelings into the price point, the console bundle actually seems like a good deal, and could give the console a new awakening - if the consumer is willing to pay $100 more than the Wii, that is.

Source: http://360.kombo.com