"The value proposition for the PS3 is increased at the new lower price point, putting increased pressure on Microsoft to cut the price of its Xbox 360. The 80GB and 60GB PS3 models compare favorably to the 120GB and 20GB Xbox 360 models," said Pachter. "We think that the $499 PS3 compares quite favorably with the $399 Pro 360 model, which has only a 20GB hard drive and no HDMI output."
"Because of this favorable comparison, we believe that Microsoft is all but compelled to cut prices, and we think the price cuts will come no later than at Microsoft’s Tuesday night press conference," added Pachter.
Pachter predicts that the $299 Core system will drop to $249, the $399 Premium down to $349, and the $479 Elite will get the biggest cut of all to $399.
