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Retailers told Microsoft's HD console will be cheaper than Sony's PS3
Microsoft has said it will undercut the price of the Playstation 3, selling its XBox 360 together with the additional HD-DVD drive for less than Sony's console.
Sony is using the Blu-ray high definition (HD) standard in its upcoming console but, according to GamesIndustry.biz, Microsoft has told retailers that it will beat the PS3 on price even with the add-on drive included in the price.
The software giant has already spent millions of dollars establishing the XBox range of gaming consoles a serious alternative to Sony's Playstation.
With so much attention on the new HD consoles, Microsoft is preparing for another fight.
Sony's Playstation 3 is expected to cost between £399 and £419 when it arrives in late November.
Sony is said to be willing to gamble everything to ensure that its favoured Blu-ray HD format wins the standards war with HD-DVD, and won't be confined to the history bin like Betamax in its battle with VHS tape.
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