Despite Microsoft recent decision to cut Xbox 360 prices across the board and the subsequent bump in sales that came with it, Sony is sticking to its guns by refusing to reduce PlayStation 3 prices before Christmas. According to Sony Computer Entertainment president Kaz Hirai, their platform is a “very good value proposition” when you factor in the inclusion of an 80GB HDD and Blu-ray drive by default.

While he makes a valid point, Sony should be cautious of any possible consumer reaction to the current global financial downturn. Consumers may be hesitant to shell out $399 for a PlayStation 3 console, especially when Microsoft’s entry-level Xbox 360 sells for half that price and Nintendo’s popular Wii for $250. With game console sales going strong for the better part of the year now, the Holiday season will certainly be interesting to watch.