While some people may not necessary agree with Wedbush Morgan analyst Michael Pachter's predictions, even his detractors would admit that he makes a couple of good ones every so often.

Pachter's recent report gave out a couple of predictions at the Electronic Gaming Summit which detailed a systematic price drop for both the Xbox 360 and PlayStation 3 year on year to keep the industry growing. In fact, this year alone, he expects both consoles to drop by US$ 50 during the holiday season.

According to his report, video game sales will be experiencing a slowdown over the next three years. He said that while the video game industry will see a 19 percent growth spurt in the U.S. and a 20 percent jump in Europe this year, growth will drop by 16 to 18 percent the next year unless consoles drop by US$ 100.

He added that in 2010, growth will slow to 10 percent and seven percent unless consoles drop by a whopping US$ 150. Finally, he ended by saying that industry will flatline by the year 2011 unless a new console is introduced by then.

We're not sure how he came up with his data, so it might be a bit early to be making sweeping statements such as this since it implies that the consoles will be obsolete in a scant six years. We're going to have to wait and see and if his predictions push through.