A top video game industry analyst has predicted that Microsoft will bring out a new version of the Xbox 360 to be bundled with their motion-based control system Natal for around $300 (~€215) when it launches towards the end of 2010.

Michael Pachter, a respected analyst at Los Angeles financial services firm Wedbush Securities, made the prediction as the industry moves out of a busy first few months of the year and attentions turn towards the next big releases.

In a series of quotes originating in a note sent out to investors by the firm, Pachter's opinion is that Microsoft would be best served by manufacturing a cheaper version of the Xbox 360 and bundling it with their Natal motion controller at the same price that the top-of-the-range 360 Elite model currently sells for: $299.

The Natal motion control apparatus is anticipated to sell for between $50 and $100 on its own.

One of the perceived problems that Sony and Microsoft have regarding their new motion controllers due out late this year is that if they are not included as part of a basic console package, uptake may not be enthusiastic enough to ensure success.

Nintendo, on the other hand, may have a relatively low-powered console in the Wii, but the motion-sensitive Wii Remotes and infra-red sensor bars have been included with each new console sold since launch in 2006.

Microsoft have confirmed that further announcements regarding the Project Natal camera will be made at the Electronic Entertainment Expo (E3) this summer, earmarking June 13 as the day of their big reveal.

Sony revitalized their own PlayStation 3's fortunes in September 2009 by bringing to market a slimmer, smaller version of their own home console along with a larger hard drive and a price cut down to $299, and are also expected to use E3 to flesh out price points and software titles for their upcoming PlayStation Move controllers.