Anilrgowda

The Nintendo Wii is not far from overtaking the Xbox 360 in households (though there is probably one of each in many households). Even with its year lead the 10.25 million Xbox 360 may be passed by the 9.84 Million Nintendo consoles that have crossed thresholds.

This week has seen a number of stories fuelling the rumour of an imminent price adjustment (possibly in the U.S as early as next week ).

A price cut is the obvious way to battle a resurgent PS3 - technically the closest competitor to the Xbox 360 – which has itself been through some price readjustments or repackaging around the world, to some success.

Sometime ago we identified an opportunity for Microsoft to, in their own indomitable way, take control (or least a larger slice) of the burgeoning gaming industry. Now seems to be another prime time for Microsoft to cement their position, but is taking on the PS3 the right approach?

It probably is from the point of view of a new uninformed purchaser stumbling into an electronics retailer, on the surface these consoles are marketed around power, right down to the option (at least for the Xbox 360) of new high definition disc formats; Blu-Ray for PS3, HD DVD for the Xbox 360.

Both also enjoy the lion’s share of third party games as well as spectacular exclusives, and this is where the Xbox 360 has the edge over the PS3.

But post price cut, Microsoft should target the continued success of the PS2, still selling 2 to 1 over its big brother the PS3.

Consumers are attracted to the PS2 for its price, back catalogue and focus on party titles that make up the majority of new PS2 releases.

With the Xbox 360 back catalogue (including original Xbox titles) consisting mainly of titles targeted at the more serious or hard-core gamer, Microsoft will find it difficult to compete with the Wii let alone the PS2.

But with a price cut, coupled with new, more pick-up-and play friendly games such as Viva Pinata Party Animals and Scene it! on the way, as well as continuing to provide rich, deep, sophisticated titles for the hard-core crowd, Microsoft can continue to flourish in the gaming game.

The next phase in the consoles wars will be interesting to watch. Major companies will jockey for advantages, whether it is on price, features or content.

September this year in particular is looking to be rich gaming month of new engaging releases across all platforms (more on that later on Radioactive IT). Leading up to the important holiday period will truly distinguish each companies hold on the gaming market.