GameStop Management Expect Wii And PS3 Price Cuts Soon

In a research note based on a meeting with four key GameStop executives, analyst Arvind Bhatia of Sterne Agee expected that both Wii and Playstation 3 will see price cuts quite soon.

"[GameStop] Management believes that a meaningful PS3 cut is highly likely in the near-term," Bhatia wrote, further specifying that a $100 cut may coincide with the launch of Madden NFL 10 in August.

Bhatia expects that Nintendo might choose to maintain its price advantage by cutting down $50 off Wii's price.

Furthermore, Bhatia revealed that GameStop has conducted what they claim to be "the most thorough study to date" and found out that "addressable market" for digital distribution "will not exist until 2014;" after which, the company expects only 25 percent of consumers to "have access to the technology required to download full games."

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