PS3 will cut prices first in 2011

A Wedbush Morgan video games sector analyst recently cited his research in the sector and found that he believes that the PS3 will be the first console to cut prices in 2011.  The analyst believes that deep within the NPD data, the number show hardware price points are still too high.

Having the worst year of the big three, Sony and the PlayStation may be put into the position of cutting prices first.  The analyst did not note whether he thought these price cuts would include PlayStation Move price cuts.

“We believe that sticky price points for the three major consoles triggered a 5% overall decline in console hardware unit sales for 2010. Handhelds performed even worse, with unit sales down 25%, contributing to continuing software weakness,” The analyst told Industry Gamers.

“We fully expect each of the three consoles to be offered at lower prices in 2011, with Sony likely leading the way as its manufacturing costs continue to decline. A $50 price cut should be sufficient to drive 5% software sales growth; and, coupled with a resurgence in handheld software sales and an easy comparison for music sales, we think that overall software sales growth could hit low double digits in 2011,”

Source: Industry Gamers