Microsoft rules out Xbox 360 price cut

Arguably the biggest news to come out of this year's Gamescom came from Sony, with the announcement of a $50 price cut for the PlayStation 3. As is often the case following such a move, eyes have turned to how Sony's competitors will respond to the move. For Microsoft's part, gamers shouldn't expect a similar price reduction for the Xbox 360.

Speaking to VG247, Microsoft's vice president of interactive entertainment, Chris Lewis, offered a definitive "no" to the question of whether the company is now feeling pressure to drop the price of the Xbox 360.

"As you can imagine, we plan for these scenarios all the time," Lewis said. "For me to sit here and say that was a big surprise would be a lie. Respect for what they do, of course. I love the competition, actually: it keeps us on our toes, and consumers benefit ultimately."

In the US, the Xbox 360 is currently available in $300 250GB and $200 4GB configurations, among various limited-run bundles. After the price cut, a standard-issue 160GB PS3 costs $250, while a 320GB PS3 bundled with Sports Champions and a Move starter kit costs $350.

Lewis went on to say that the Xbox 360's competitive advantage that continues to grow the console's installed base is Xbox Live and Kinect.

"We think we offer great value now," Lewis said. "We have better service provision than anybody. We attach more effectively than anybody. I think Xbox Live's enviable. What we've achieved with Kinect has given us growth that I think others would aspire to at this point in the lifecycle. We're happy with our position. While we're not complacent about the competition, I wouldn't trade places."

Microsoft's console has been particularly dominant in North America. According to NPD, the Xbox 360 has outsold the PS3 in 13 of the past 14 months.