US retailer GameStop expects Microsoft and Nintendo to follow Sony’s lead and cut console prices in the third quarter of the year.

“… The recently announced Sony price cuts and most likely others should get the installed base growing again and we now know of about ten major titles that are scheduled for 2010,” said GameStop CEO Daniel DeMatteo.

“On the price cuts, you know, historically what has happened is that the other manufacturers who follow the others with a price reduction. We assume in our forecast and some time in Q3 that that will occur but we don’t have any data on that though. But we have an assumption it will,” he added.

Later in the call, which took place following the release of the company’s second quarter financial results, executive VP of merchandising and marketing Tony Bartel said that Call Of Duty: Modern Warfare 2 had the potential to become the biggest selling title in history.

“We believe that Modern Warfare 2 has a chance to be the largest title of all time and obviously we are basing that on the reservation activity that we are seeing in our stores, so we continue to see strong reservation activity,” he said. “We have very strong reservations on the Call Of Duty premium edition and that’s obviously a price point. There’s a lot of excitement around the goggles on that, so we have a very strong demand that we are seeing in our reservations. Once that was announced, we had a lot of reservation to move from the base version to the premium version, which is a very good sign.”

Source: Seeking Alpha