It should move to the right. People crossing the road are supposed to watch for traffic and make the judgement about when it is safe to cross (they also appear to be crossing *against the light* - in my opinion, the best way to solve these issues with self-driving cars is to make them act in a way that's consistent with the rules of the road. No human driver would be expected to sacrifice their own lives for someone in the road when they shouldn't be, so why would a self driving car be expected to kill its occupants? Finally, and arguably most importantly for people trying to market these products, nobody's going to buy or ride in a car that might decide their life is worth less than someone else's; I certainly never would. Also, pedestrian safety standards mean that they are more likely to survive such an accident than the occupants are to survive an impact with a solid object

Pedestrian safety is actually a really great point and if that's the other side of the self-driving car system, perhaps there's a way to signal that like an external airbag or a secondary wheel locking mechanism to slow/stop the vehicle.