Wedbush Morgan Securities analyst Michael Pachter expects Nintendo to cut the price of the DSi later this year.

“We also think the Nintendo DS will be cut to $99 from $129 with the DSi cut to $149 or lower from $169, some time before the holidays,” he said in a research note.

Earlier this month Denise Kaigler, Nintendo of America’s vice president of corporate affairs, said that US DSi sales had outpaced those achieved by older DS models and the Wii after three months on the market.

“Interestingly, the immensely successful DSi, with two million [US] units sold in its first four months of release, could not drive a positive bump in DS software sales (down 25 per cent in July year-over-year),” Pachter noted, suggesting that the sales decline is likely recession and product line-up driven.

The analyst also expects Sony to introduce price cuts for its PSP models, including the soon to be released PSP Go, some time next year.

“We anticipate the PSP will be cut to $129 from $169, and the PSP Go launch price of $249 reduced to $199 some time in 2010,” he said.