Wedbush Morgan analyst Michael Pachter is predicting a sub-$400 pricing scheme for the PS4 and Xbox One - $349.99 for the PS4 and $399.99 for Xbox One. This comes from the investment firm's annual E3 preview report, which unsurprisingly calls out the next generation consoles as the main focus of this year's Electronic Entertainment Expo in Los Angeles.

Pachter says the Xbox One pricing "makes sense given that the Xbox 360 Pro debuted at that price point in November 2005," though he stresses that this is without any type of subscription or subsidies program - like a cable television provider. As for PS4, Pachter asserts it'll make its debut at a lower price point than the PS3 as that $599 debut "negatively impacted its long-term popularity."

"We also expect the hardware manufacturers to announce price cuts," Pachter writes in the report (pdf link). He predicts both the PS3 and Xbox 360 will be reduced by at least $50 in the run-up to the holidays, while he says the Wii will be knocked down to $99 - maybe we'll get our own Wii Mini? Pachter also says Nintendo may try to increase Wii U sales through a price cut or "a bundle that includes some of its more popular software." Finally, he anticipates a PS Vita price drop, too.