conference call to discuss its corporate earnings. In it, GameStop noted that both the Xbox 360 and PS3 are bound for a price cut some time this year. They're predicting a $50 price cut for both machines (the PS3 would start at $349 if this prediction comes true). However, GameDaily notes that "they did not get that information from the manufacturers, however; it's merely the retailer's educated guess."
Price drops are a regularity in the industry, and we think the PS3 is due for one this year as well. An increasingly attractive software lineup coupled with a price drop is certain to boost Sony's install base.