Analysts predict US 360 price cut

In the wake of yesterday's European Xbox 360 price drop, US analysts have said they expect similar action from Microsoft in America before the end of the year.

"I expect a 360 price cut before Xmas, perhaps to $299 for the premium model," said Wedbush Morgan's Michael Pachter. "If Sony cuts the price before then, I expect Microsoft to cut to at least $50 below the price of the PS3."

Colin Sebastian, an analyst with Lazard Capital Markets, agreed that a US price cut is a strong possibility.

"We believe price cuts are also likely in North America on the Xbox 360, possibly combined with the long anticipated announcement of a new hardware sku with a larger hard drive," he said.

"As for PS3, Sony probably takes a wait and see approach as to whether Blu-ray momentum and an improving software line-up can sustain higher demand, although competitively they may be left with little choice if pricing continues to limit market share."