I remember some sites stating that this may be a trick to fool Microsoft but later it turned out the PlayStation 3 will in fact be launched for $499 or even $599 if you want one with a 60GB hard disk, HDMI support, Wi-Fi and Memory Stick, SD and CompactFlash card support
The cheapest Xbox 360 only costs $299 and the Premiul model with a HDD retails for $399. Additionally, according to some rumours Microsoft is planning to drop the prices to respectively $219 and $299 in October.
If this is true the PlayStation 3 will be very hard to sell. The PS3 has the advantage of having a Blu-ray player but by the time the PS3 is on the market Microsoft will have launched its HD DVD add-on drive. The price of this HD DVD drive isn't officially announced yet but according to some rumours it may be close to $100.
At this week's E3 show Microsoft said it thinks the PlayStation 3 will be way too expensive, pointing out consumers will be able to buy both the Xbox 360 and Nintendo's Wii console for the price of a PlayStation 3.
About a year ago Sony defended the PlayStation 3 by stating the PS3 is "a box made of future technology opposed to Xbox 1.5, which seems to be a combination of things available today." However, this week The Inquirer talked with several game developers and heard they aren't really impressed by the performance of the PlayStation 3. The performance isn't really there yet in many cases and they say that both the Xbox 360 and PlayStation 3 don't have enough horsepower to run state-of-the-art PC games like Crysis. Game developers say they are disappointed because they aren't able to do what they've planned to do.
However, Sony's president Ken Kutaragi is still confident they will reach their shipment targets and he even points out the console is "probably too cheap".
In the meantime, Microsoft owns 100 percent of the next-generation console market and it's up to Sony and Nintendo to steal marketshare from the Xbox 360 console.