“If Microsoft does nothing, I think PS3 will outsell XBOX 360,” he told IndustryGamers.

“My friends at Microsoft are extremely proud, and they absolutely refuse to tolerate the possibility that the PS3 will outsell the XBOX 360. I think they have the ads printed for the XBOX 360 price cut, and will drop them on us the instant they see PS3 sales greater than 360 sales.”

Pachter added that he believes Microsoft will continue selling Kinect and XBOX 360 bundles at a lower price until it decides to match the base price-point of the PS3.