Console Price War Will Decide Outcome of Xbox 360 vs PS3

Robbie Bach president of Entertainment and Devices at Microsoft, has been discussing the inevitable price war between Sony’s Playstation 3 and Microsoft’s Xbox 360.

In an interview with the infamous Dean Takahashi at the San Jose Mercury News, Robbie Bach believes the looming console price war will decide the outcome of the battle between the two gaming giants.

Seeing as how the 360 has a year lead on the new Playstation, Sony’s current manufacturing problems, and the $300+ discrepancy between the costs of each console, it’s hard to see Sony ever producing a PS3 at anywhere near the pricing of an Xbox 360, at least not until the very end of its lifespan.

the Inquirer - Console price war looms

Asked about the inevitable release of the next generation “Xbox 720,” Bach’s response was that the engineers are always working on the future products, but that cost reducing the Xbox 360 “seems to be the first order of business.”

But while Microsoft is looking to reduce costs to improve the profitability of its Entertainment and Devices Division, it’s still unclear as to when customers will actually see any dramatic price cuts directly from Microsoft. Some vendors are taking matters into their own hands by offering special promotions or rebates with Xbox 360 systems, but Microsoft will likely let the PS3 dance around in the ring for a few rounds before it starts unloading with price cuts.

Daily Tech - Microsoft Talks of Cost Reductions on Xbox 360