It is believed that Microsoft is looking very seriously at a price cut on the Xbox 360 just in time for E3. A noted industry analyst believes that not only is Microsoft considering a price cut on the Xbox 360, but Sony is also looking at a price cut on the PlayStation 3. If the cuts come, they will come at E3 in an effort to steal some of the thunder from Nintendo’s Wii U launch.

While the PlayStation 3’s sales continue to lag behind the Xbox 360, overall sales of consoles are slowing. We know that no next generation console talk will be coming from Microsoft and this is believed to open the door for Sony to get console sales moving again by slashing the price.

Patcher believes that it could be at least May before sales in the video game space release start to take off again. Software releases since the start of the year have been soft for the most part, with few high profile titles being released.  May will see a number of high-profile titles being released, including heavy hitters Diablo III, Max Payne 3, and Ghost Recon: Future Soldier. This could be just what the industry ordered.