Yesterday, Microsoft surprised the games industry with a significant price cut in the European territories. Our own UK-based writer, Jem Alexander, noted that the price drop was "tempting." (However, he still hasn't given in to buying a 360!)Strategy Analysts' principal analyst, David Mercer, commented on the situation. He believes that this will force Sony to play a price cut of its own in the territory: "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."
The PlayStation brand is exceedingly strong in Europe, and is one of the most crucial territories for Sony in this generation of the console war. We believe that Sony's not going to take Microsoft's price drop lightly.
