PS3 expected to outsell Xbox 360 in July NPD report

Industry analyst Michael Pachter expects the PS3 to outsell the Xbox 360 for July due to Sony's US$100 price cut last month. If accurate, it would mark the first time the PS3 outsold the Xbox 360.

"We expect a bump in PS3 hardware and software sales due to the PS3 price cuts," Pachter said in his NPD preview report. "Sony stated that sales of PS3 approximately doubled after the price cut, with sales before the price cut averaging 20,000 units per week."

In turn, the analyst thinks Xbox 360 sales will be cut in half due to reliability issues surrounding the three rings of death error.

"We have forecast a month-over-month decline for Xbox 360 hardware sales, due to the warranty issue announced in early July. We believe that the announcement may have disrupted sales for a week or so, as consumers struggled with the meaning of the 'three red rings of death' issue."

But who will come on top when the numbers are released? It's all Nintendo at similar levels of previous months.

In addition, Pachter expects total industry growth to be 13 percent over last year.

The NPD group, which tracks North American game sales, will release data for July on Thursday August 24.