Pachter: Microsoft will release 250GB Xbox 360 model early next year

Think the 120GB Elite Xbox 360 is Microsoft's final version? According to Michael Pachter it's not. The Webush Morgan Securities analyst believes we will see another iteration from Microsoft sooner rather than later. It's in a discussion about the Modern Warfare 2 Xbox 360 bundle Michael lets it slip.

"They are going to have a 250 gig box. That's the point. They didn't buy 5000 of these for a test. There's going to be a 250 gig 360 some day. So I actually think your're going to see the 120 gig priced at $249 whenever they feel like it, which might be January, February, it's going to happen. So, if I were a gamer, I would be watching for that."

Since Sony released the redesigned PS3 Slim, Microsoft has been losing momentum, and now the PS3 is leading not only the Xbox 360, but the Nintendo Wii in the weekly hardware sales charts globally, so Michael's prediction makes a lot of sense if Microsoft wants to remain competitive. This Christmas will be an interesting one to say the least, but with The Redmond Giant constantly forging ways to stay relevant in the industry, I doubt it'll be a bad season for them.

However, in the coming year one must wonder what will Microsoft do to sustain momentum; with the PS3's games constantly outdoing its counterpart in pushing innovation to the next level, what will be their response? Natal is good, but no one knows how the motion device will be received, it could be very successful or a total flop. If the current situation holds steady, the years facing Sony's PS3 are much more favorable compared to the Xbox 360. I see only one route for the Redmond giant, a route I believe that's inevitable. Microsoft will have no choice but to jump into the next generation of consoles before Sony.

They will do it, but what will be Sony's response? Will the software maker follow suit and rush out the PS4, or will they let the PS3 take its course? But if they do allow a few more years before rolling out the PS4, there will be a huge gap in technology again, with Sony's PS4 leading the way because of its late introduction. Developers very much disdain this uneven balance, since it costs them substantially more money to develop games at the beginning of every cycle.

Question, questions, questions, and not too many answers in the mean time. But there's one thing that rings true, ever since Microsoft crashed the console war party, competition has become stiff. It's all good for consumers, so I'm not complaining.

10/12/09 Ernice Gilbert