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Game Console Price Cuts Likely in May - Analyst

Time: 16:35 EST/21:35 GMT | News Source: Reuters | Posted By: Byron Hinson

Price cuts for two video game consoles, the Xbox and the PlayStation 2, are likely to kick in as soon as this month, due to slowing retail sales ahead of the summer months, an analyst said on Monday. In a research note, Gerard Klauer Mattison analyst Edward Williams said he believes price cuts will be announced at the industry's annual Electronic Entertainment Expo (E3) because a drop in sales has retailers worried ahead of the summer, usually the industry's weakest season. Williams said he believes Microsoft Corp, fighting to gain a share in the competitive game machine market, will kick off the cuts, bringing the Xbox down to $199 from $299 at a news conference scheduled for May 20.

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