“Sony will be nervous that the PS3's recent sales surge may fizzle out now that the premium Xbox 360 undercuts the PS3 by £40, and the cheapest Xbox model is almost half the price of a PS3,” said Strategy Analytics principal analyst David Mercer.
“Sony will be scrutinising the daily sales reports, but will probably try to hold out until later in the year before making its next price move.
“Microsoft must continue to drive cost out of console manufacturing in order to sustain these improvements in financial performance.”
Microsoft’s Xbox 360 Arcade bundle, which does not include a hard drive but does come with a 256MB memory card, wireless controller and HDMI port, now retails for £159.99.
Its other SKUs, the Xbox 360 Pro and Xbox 360 Elite, now retail for £199.99 and £249.99 respectively – both well below the £299.99 RRP of Sony’s 40GB machine.