Microsoft's Upscale Xbox May Escalate Sony Battle - WSJ.com

Reality just keeps getting uglier for Sony... 

Microsoft got a jump on Sony by rolling out its Xbox 360 in late 2005, allowing it to sell a large volume of the consoles early. Then Sony late last year launched the PlayStation 3, promising newer, more advanced technology than the aging Microsoft machine.

With the Xbox 360 Elite, Microsoft has "narrowed the gap on features and functionality" with the PS3, says Colin Sebastian, a senior research analyst at Lazard Capital Markets.

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The lowest-priced version of Sony's PS3 is $499, so Microsoft's $479.99 price undercuts that with similar technology.

Source: Microsoft's Upscale Xbox May Escalate Sony Battle - WSJ.com