Although most analysts just seem to think that they know what's best for the gaming industry and various companies within it, Wedbush's "Nostradamus" personality Michael Pachter generally has sound advice and predictions.

With the latest round of high profile price cuts trying to boost up sales during a downward turn for the economy, Pachter warns that Microsoft is getting complacent, and could wind up being outsold by Sony in 2011.

Industry Gamers reports that in the latest edition of "Pachter's Podium," the analyst said that Microsoft needs a price cut to stay ahead of the competition. However, that advice is likely to fall on deaf ears, as Microsoft says that option's not on the table. Reading between the lines, it seems that Microsoft thinks Xbox Live and Kinect will support their sales just fine.

However, a cursory look at VG Chartz might show why Microsoft isn't worried about the PS3 selling a few million more units -- the PS3 has outsold the Xbox 360 in 2009 and 2010. For context, YTD (year-to-date) sales still put the Xbox 360 ahead of the PS3 in sales since launch by a few million units. Either way, both companies are still battling it out for 2nd Place.

From Pachter himself:

"IF Microsoft does nothing, I think PS3 will outsell Xbox 360," he told IndustryGamers. "However, 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."

He added, "In the meantime, I think we'll see a reduction in the price of the Xbox 360/Kinect bundles (similar to Wal-Mart's "goof" last weekend), and Microsoft will use that to keep the PS3 at bay until they decide whether to match price for the console only."

[Source: Industry Gamers, VG Chartz]