Don't Expect Any More Console Price Cuts, Analyst Says

EEDAR analyst Jesse Divnich recently expressed his views on the current console generation, saying that consumers wouldn't get a new price cut anytime soon, and that hardware manufacturers would rely on new peripherals to prolong the lifecycle of their products.

First off, Divnich revealed that we shouldn't expect any price cuts on consoles like the PlayStation 3 or Xbox 360, as companies like Sony or Microsoft, respectively, wouldtry to add new features to their hardware instead of just selling it at a lower price.

"Don't hold your breath," he said on the possibility of a $200 PS3.

"Unlike the previous generations, the goal this time is to increase the value of the consoles over time. We've seen this occur already through the implementation of larger hard-drives, Wi-Fi, and various online services," he explained.

The analyst also talked about how new peripherals, like the PlayStation Move or Kinect, would prolong the lifecycle of their respective platforms, and keep this generation going for quite a long time.

"Most console cycles last no more than five years, but with us approaching the fifth year of the current and with no end in sight, the success of the Move and Kinect are critical to the success of this elongated cycle," Divnich revealed.

Still, when the new console generation rears its head, Divnich says that Nintendo will be the first company to make the jump, largely because the technology in the Wii is showing its age quite badly.

"Due to its target market and its technology, Nintendo will always operate on a shorter console cycle. Which isn't a bad strategy," he said.

Until new home consoles appear, the handheld market is getting ready for some massive shakeups, as both Nintendo and Sony will launch new devices, the announced 3DS and the all-but-confirmed PSP2, during next year.