NPD figures: Cut 360 price now to curb PS3 momentum, says analyst

Jesse Divnich, analyst for prediction market the simExchange, has said that PlayStation 3 has now gained real momentum in the US and that Microsoft must cut the price of the mahcine to remain competitive.

His comments came after the release of February NPD data last night, which showed PS3 ahead of 360 in America for the second month in a row.

"Whether there is an Xbox 360 shortage or not, it is clear that the PS3 has gained considerable ground on its rival," said Divnich. "Given these past two months and the momentum that the PS3 has gained, Microsoft must react quickly as the PS3's momentum will only get stronger until Microsoft reacts."

He added: "In the short-term, Microsoft's only feasible and economical option is to look at reducing its hardware price in North America to at least slow down the PS3's momentum until it can implement more long-term solutions to winning the next-generation console war."

Microsoft had already said this week that the reason for the low 360 sales last month was supply issues.