If you're thinking about buying a new console, you might want to wait. Wedbush Morgan analyst Michael Pachter is predicting that all three consoles will be instituting $50 price cuts in the future, with the Xbox 360 being the first to drop to a lower price sometime in Spring 2011.
"We estimate that a $50 console price cut across the board will impact software sales by a positive 5%, and we expect Microsoft to lead with a cut some time in Spring 2011," Pachter told Industry Gamers.
Pachter went on to say that he believes new hardware -- specifically the 3DS, Move, and Kinect -- will help spur sales for the major console makers, but that profits for 2010 will still end up in the red compared to last year. This will be offset by booming PC sales, Pachter predicts, thanks to the recent release of StarCraft II and WoW's Cataclysm expansion, which is coming sooner than expected.