Pachter: 'Slim 360' to launch with Natal'

Wedbush Morgan analyst Michael Pachter has predicted that Microsoft will release a slim iteration of its Xbox 360 console to coincide with the launch of Project Natal.

Speaking on his GameTrailers show, the industry expert also said that he does not expect the new system to be available as a standalone unit.

"I think there is a '360 Slim', although I don't think they will call it 'Slim' since the PS3 is called that. I think there is a cheaper version of the Xbox 360 console coming out. I think it will probably have a different graphics card and processor, and if it does exist they will save around $20 to $30 (£12 to £20) on each unit," he said.

"They won't cut the price on this unit. Instead they will bundle it with Natal and perhaps a 250GB HDD for $299 (£200), see if they can get 8 to10 million units out there and make Natal their future platform."

He added: "I think a 'Slim' SKU is coming out, but no, you won't be able to buy it cheaper than $299 (£200) until at least next year."

A slim Xbox 360 has been frequently rumoured since the announcement of Project Natal, although Microsoft has denied reports in the past.