There are rumours floating around retail channels that the Xbox 360, with the HD-DVD add-on drive, is going to come in cheaper than the PS3.
According to Eurogamer
, retailers are being told to expect the HD-DVD drive at under £140 - the price differential between the Xbox 360 Premium pack at £279 and the expected PS3 premium bundle price of £419.
However, Microsoft is also due to take a knife to Xbox 360 prices come November, so we could see the 360 selling at £250 or less for the HDD-equipped version, which would make it look even better value next to the PS3.
Many are expecting the format wars between HD-DVD and Blu-Ray, which ships as standard in the PS3, to decide the console wars to some degree. Microsoft believes that having the HD-DVD drive as an option allows it to fulfil the needs of those who want next-gen media, whilst also keeping the price of the bare console down for those who are just interested in games.
If the PS3 came in at £419 and the 360 with a HD-DVD drive came in at £380, which would you go for? Do you even care about next-gen optical formats in your living room? Let us know over in the forums.