Analyst issues discount price warning

Lazard Capital senior analyst Colin Sebastian has issued a warning about triple A product discounting over the Christmas and New Year period, on fears that it could lead to a general trend in a difficult economy and subsequently lower publisher revenues.

He voiced his concerns in a recent analyst note looking at Activision Blizzard's move to knock USD 10 off the price of Call of Duty: World at War, bringing the US retail price point down to USD 49 - a move that follows price reductions on Guitar Hero: World Tour, and other cuts from Electronic Arts and Ubisoft.