Analyst: Console price cuts may not stimulate hardware sales

Price cuts for consoles may not stimulate hardware or software sales in the US, says Doug Creutz of Cowan and Company.

Due to economic pressures, Creutz does not believe that despite historically working in the past, a price cut will not boost the games market this time around.

"We are concerned that, given pressures on the consumer, price cuts may not have the stimulative impact to hardware and software sales that they have had in the past," wrote Creutz in a note to investors.

"We expect hardware price cuts on all platforms by September, with announcements possibly as early as next week’s Gamescom."

Creutz has suggested that a $100 cut to PS3, $50 off Wii, and the Xbox 360 Elite dropping to $300 would be a major benefit to both the consumer and the console makers.

More over on GI.biz.