Pachter: new console needed in 2011 to prevent flatline

Analyst Michael Pachter predicts Xbox 360 and PS3 will take price cuts this holiday.

Speaking at the Electronic Gaming Summit yesterday, leading industry analyst Michael Pachter said he expects both the Xbox 360 and PlayStation 3 to see $50 price cuts this holiday, with estimated industry growth of 19% in the US and 20% in Europe this year.

However, unless the consoles drop further, Pachter expects growth of only 16% in the US and 18 % in Europe next year. He expects growth to drop to around 10% in 2010 and for the industry to flatline in 2011 unless a new console is introduced.