Will The PlayStation 3 outsell its rival the Xbox 360 this holiday season?

Sony has been slashing the prices of the PlayStation 3 substantially for the holiday season, not that long ago we saw Sony swipe a huge $50 off all of its PlayStation 3 models and even after the PlayStation Network fiasco not that long ago the reputation of PlayStation has recovered and sales are incredibly strong according to Sony’s most recent reports. According to Sony revenues from PlayStation 3 and related product sales are up a staggering 70% based on the same time last year.

It would seem after all of those events that now would be a perfect time to buy a PlayStation 3? However, you might want to reconsider. Microsoft is responding to Sony’s price cutting tactics and now is the time to get an Xbox 360. Analysts are stating that they do not believe Microsoft will cut standalone Xbox 360 console prices any further since Microsoft knows they have a much stronger unit but they have been cutting Xbox 360 and Xbox Kinect prices in order to launch the popularity of the Kinect feature.

Microsoft knows it is in the dominant position as it has: the advantages of the untarnished Xbox Live online gaming network, the innovative Xbox Kinect kit which creates a much more immersive gaming experience and the Xbox 360’s more powerful gaming prowess that allows for better graphics. You can now get a 250GB Xbox 360 version for $399 (£289) or 4GB Xbox 360 Kinect bundle for just $299 (£234) over the 320GB PlayStation 3 for the same price which is a steal given that a Kinect unit can cost around $150 (£120) on its own. And if that wasn’t good enough market analyst Pachter believes that Microsoft may cut those bundle prices even further.

Sony may outsell Microsoft this holiday season but it unlikely especially given past data which shows that in the last 14 months the Xbox 360 has outsold the PlayStation 3 in 13 of them. Another point worth mentioning that works in favour of Microsoft is the Christmas gaming line up which sees exclusive Xbox 360 games released such as Gears of War 3, Forza 4 and the sequel to the legendary Halo series. Whilst, PlayStation 3 struggles to match that with the releases of Uncharted 3, Resistance 3, Ratchet & Clank: All 4 One, God of War and Team Ico.

Pachter summed up the whole rivalry quite well stating that “In the meantime, I think we'll see a reduction in the price of the Xbox 360/Kinect and Microsoft will use that to keep the PS3 at bay until they decide whether to match price for the console only.”