Time For PS3-Xbox 360 Price War? Nope (MSFT, SNE)

Microsoft (MSFT) has slashed the price of its Xbox 360 in Europe: The high-end model is now $80 less than Sony’s (SNE) PlayStation 3, and the most basic model is almost half the cost of its Sony rival. So Sony’s going to have to follow suit, right?

Nope. Because now that Sony’s Blu-ray has won the next-gen DVD format war, the built-in Blu-ray player in each PS3 has transmogrified from an expensive bauble to a useful feature. Meanwhile the Xbox 360 doesn’t even have a built-in HD DVD player.

And unlike Sony’s previous attempt to sell the PS2 as a combo game machine/movie player, the Blu-ray player on the PS3 works quite well for flicks — we’ve been testing it ourselves recently. Unfortunately, Spider-Man 3 sucks just as bad in HD as it does on a normal player.

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