Sony is likely to announce a price-cut for PlayStation 3 at E3 in June, according to Wedbush Securities analyst Michael Pachter.
Sony and Microsoft seem unlikely to steal the limelight away from Nintendo and its upcoming Wii U console, which will undoubtedly take center stage at the June expo in Los Angeles.
But Mr Pachter believes that a Nintendo hardware price cut may force the hand of both Sony and Microsoft to drop the prices of their current consoles.
"We expect hardware sales to rebound once price cuts are implemented," explained Mr Pachter, "but expect a recurrence of the dip next holiday, partially buffered by some modest contribution from the introduction of the PS Vita in February and the Wii U later this year."
He also believes that PS3 sales will "continue to lag" behind Xbox 360 sales, with a downward trend of 10-20 per cent likely, until Sony announces a price cut.
An upcoming NPD by Wedbush for March sales data is set to reveal a fourth consecutive month decline, with software sales down 23 per cent in North America.
Source: Games Industry
By Gaetano Prestia - Tweet @Gaetano_Prestia