'Industry decline will continue until Microsoft or Sony launch new console' - Pachter

Xbox 720 or PS4 could be the key to stimulating the declining video game market, according to Wedbush analyst Michael Pachter. His statements come ahead of the NPD releasing yearly market figures that are expected to make for grim reading.

GI.biz reports that a preview to the NPD's full report - due on Thursday - includes a note fro Pachter who says the typically strong Christmas season will not reverse the industry's poor sales health.

"We expect October - December to be relatively flat," Pachter stated, "and expect a return to negative territory again next year, at least until the launch of a next-generation console from Microsoft or Sony."

"A new console cycle is likely to reverse the negative sales trends of the last several years," Pachter continued, "with next-generation consoles expected from each of the three manufacturers over the next 18 months.2

"Nintendo will launch the Wii U on November 18, and, while neither Sony nor Microsoft has yet announced new hardware, we expect a PS4 no later than November 2013, and a next Xbox no later than March 2014."

"We believe that the publishers plan an unprecedented number of new games for launch in the first two years of the next generation, providing relief from the gamer fatigue we've seen over the last three years."

So that's interesting - Pachter expects PS4 to launch before Xbox 720. What do you make of that? Let us know below.