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Pachter: 360 'S' price cut coming next year

Microsoft has "room" to reduce price of 250GB Xbox 360 S, says analyst

Industry Analyst Michael Pachter has predicted that Microsoft will drop the price of its new 250GB Xbox 360 'S' next year.

The console was launched in the UK on Friday - and helped increase Xbox 360 sales by 1000 per cent, according to Microsoft.

The 250GB machine - which offers built-in WiFi - has a launch SRP of £199 in the UK and $299 in the US.

Microsoft yesterday announced a new, casual-friendly 4GB Xbox 360 S which comes in matte black for £149.99 in the UK $199 in the US - which will be launched in August.

"The new arcade SKU is very attractive at $199, and suggests that the standard SKU at $299 is very profitable, giving Microsoft room to cut price on the more expensive SKU," Pachter told CVG.

"I don't expect that until next year, but think pricing on the new arcade SKU is a signal that price is coming down next year."

The 'new Arcade' system will eventually be bundled with motion control camera Kinect plus one game for £249.99.