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The PS3/Xbox 360 are targeting similar markets so thats why they deal with each other so directly.

Microsoft knows that Sony needs to cut the price of their console at some point, essentially the best case scenario for them is the status quo and essentially this statement is an attempt to reinforce the current situation.

Whats interesting is whether or not Microsoft intends to move on price anyway early in the year. They don't have to cut the price of the Arcade unit. They make money on the Premium and Elite SKUs and cutting the cost of those by $50 is a way for them to directly target the market that the PS3 contests with these SKUs without incurring losses.



Tease.