Analyst WMS has predicted that Microsoft will not cut the price of Xbox when Xbox 360 arrives later this year, prompting a possible PS2 price-cut from Sony.

In a release over the weekend, the respected firm stated, "We expect Microsoft to maintain pricing for the current generation Xbox following the launch of the next generation Xbox 360 console (expected in mid-November), in order to reduce demand for the current Xbox and spark demand for the Xbox 360."

It added, "Should Microsoft choose to maintain pricing for the Xbox, we believe that Sony will cut price on the PS2 in order to capture incremental market share in front of the launch of the Xbox 360. We believe that Sony’s PS2 shipment forecast of 13 million units worldwide does not incorporate a price cut this year, although we expect one no later than this fall. Should Sony cut the PS2 price, we believe that it will revise its PS2 shipment forecast upward by two to three million units."