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KatinJin said:

Mr Hirai argues that the basic Xbox has no hard disk drive while the PS3 plays high-definition Blu-Ray movies as standard. “When you really compare apples to apples, then I think we have a very good value proposition,” he said.

Sony, launched its third PlayStation model in the line in November 2006. The PS3 competes most directly with the Xbox 360. Both are high-powered consoles that have sold well to gaming enthusiasts, but neither has matched the casual appeal and rapid success of the much cheaper Wii.

Two years after launch, Mr Hirai is keen to broaden sales but said “we’re getting to the point where price becomes more important”.

http://www.ft.com/cms/s/0/0c6d283e-988a-11dd-ace3-000077b07658.html?nclick_check=1

Anyone notice this bit? Funny saying "much cheaper Wii" when the 360 arcade itself is "much cheaper" than the Wii.

To those thinking a PS3 price cut will skyrocket them into 2nd, I don't buy it. There may be more demand, but it will never be as cheap as the 360. Microsoft is in a much better spot than people seem to believe - since they share game libraries, I can see the 360 peaking/declining when the PS3 does, even though it came out a year earlier. As long as the PS3 stays relevant, there's no reason for the 360's sales to fade away.