Doug Creutz, expected price cuts for all major consoles won't stimulate sales as much as previous cuts have in the past, reports GI.biz. The reason, according to Creutz, is increased "pressure on consumers" brought on by the current economic climate. That said, Creutz still believes that price cuts are imminent, specifically a $100 cut to the PS3, $50 from the Wii and a new $300 price for the Xbox 360.
Of course, given the rumors and evidence flying around the web these days, you don't really need an analyst to tell you that. Creutz expects price drop announcements as early as the Gamescom convention next week. (Joystiq's Magic 8-Ball strongly agrees.)
On the software side of things, Creutz expects year-over-year sales to continue to decline, starting with the incoming July NPD numbers. Another drop will occur in August, but things may turn around in September because nothing gets the cash flowing like Guitar Hero and Halo.