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PS2 due for a price drop, Xbox to follow

Time: 08:56 EST/13:56 GMT | News Source: Joystiq | Posted By: Brian Kvalheim

Analysts Chris Kwak and Jason Kraft of Susquehanna Financial Group analyzed the history of console price drops (see graphic) to determine that the PS2 is more than due a price drop. They believe that there's a "very high probability" that the PS2 will be dropped in price this year, citing GameStop's Holiday 2006 sales conference call in which that company mentioned that Sony may drop the PS2 to $130 by E3 (second week of May) of this year. Don't expect Microsoft to sit through a PS2 price drop quietly, though. The analysts expect the price of the original Xbox to fall by a third, from $150 to $100.

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