The cpu and Blu-Ray optical drive really beef up the PS3 price. That said I'd be very suprised if the 360 really was half the price of the PS3 in a years time. Firstly Sony wouldnt give that kind of advantage to MS and secondly if PS3 cost so much what insentive does MS have to keep lowering the price of the 360? As long as they undercut the PS3 by a reasonable amount I'm sure they'd be happy.

Probable more a case of the press jumping on every random quote going, ie people like me and making it news.

On the other hand though Jim MS CAN and WILL sell at a loss, they saw the massive share Sony has in the console market and they want it, by hook or by err bargain prices.

true, they have the cash to throw away, why not take some of sonys pride and prove they can sell consoles aswell. get the salt out to rub in the wound!

Sony are in most peoples bad books already atm, with a few nasty blu-ray DRM suprises to come, they won't be in many PC users good books for a very long time.

I won't be buying a blu-ray DVD player, let's put it tht way, or any other sony kit than you very much.

Aye sony's lost out bigtime here and pretty much everywhere else they have goods marketed

Yeah but Felon, MS sold at a loss for a good reason.. they had to get somewhere in the console market. This time round they will already have a price advantage and an earlier launch, they have no reason to drop the price too far. If it really did go to half the price of the PS3 a lot of people would see it as an inferior product. Lets not forget here that both these consoles kick ass so far as performance goes so there will be a lot of PR involved and it wont be as easy for MS to say its the best when its half the price.

Im not saying they will, what i am saying is that they can easily offset their loss on the console compared to Sony.

Sony will sell the ps3 ata loss when it comes out, i meas the xbox360 will probably sell at a loss when it comes out, just think of the hardware inside! at teh end of the day they will easily make their money back through game sales which they will hike up to £50 or so.

It also appears that the 360 is going to launch with a very limited number of games. It'll be interesting to see what happens - you would imagine that the PS3 will be a more reasonable price by next Christmas, which is when the younger kiddies will probably be getting them. I imagine.