Analyst: Xbox 360 Has 'Lost Significant Momentum'

In advance of E3 next week, Signal Hill analyst Todd Greenwald has issued his own E3 preview note, delving into expectations for some of the major companies. Regarding the big three console makers, Greenwald feels that Microsoft needs to do something to shake up the business. The much rumored price cut to $299 (which has been leaked at numerous retailers and seems all but confirmed) almost seems to be a necessity for Microsoft at this point.

"We think the 360 has lost significant momentum to both the Wii and PS3, especially in Europe, and is in need of both a price cut and new features to bring in mainstream gamers beyond the Halo/Call of Duty/GTA crowd," Greenwald said. "Hopefully, Microsoft will have something else up its sleeve, such as a new motion-enabled controller (to better compete with the Wii)."

As for Sony, Greenwald, like other analysts, is not expecting the company to react to any Microsoft price cut. "We do not expect a price cut on the PS3 just yet - Sony appears to be focused on profitability right now, and actually has some momentum behind it now with the Blu-Ray win, and its strongest lineup of exclusive titles since the console’s launch (Metal Gear Solid 4, Gran Turismo 5, LittleBigPlanet, Killzone 2, Resistance 2, Motorstorm 2, etc)."

Regarding Nintendo, Greenwald thinks the company may be preparing for a big announcement at E3. "Nintendo has been surprisingly quiet lately, and has not announced any 1st-party Wii titles for the 2nd half. They have hinted that there will be something for the ’core gamers’, and we have heard rumblings that there will be a big surprise game that may incorporate a new peripheral, much like last year’s introduction of Wii Fit, which came with the balance board," he said.