PS3 will win despite high price

Sony CEO Howard Stringer has conceded that the company has adopted a riskier strategy by giving the PlayStation 3 a high price tag - but said he's confident that it will still come out on top in the next-gen console war.

"The price of the PS3 is high... But you're paying for potential," Stringer told a Tokyo press conference.

"Obviously, it's a higher-risk strategy as all new inventions are. But if the PS3 lives up to its total potential, then I don't think anyone will be worried about Nintendo or Xbox's cheaper price," he added.

The Xbox 360 Core system retails for £209.99, or £279.99 for the hard drive-bundled version. Nintendo has yet to announce a price point for the Wii, but executives have previously confirmed that it will retail for less than $250 (£140).

The PlayStation 3, however, will go on sale for $499 for the 20GB version and $599 for the 60GB model. But consumers will be making a long term investment, according to Stringer - just as Sony has.

"When you bring into new technology, do you go for a cheaper transitional [product], or do you take a chance on future-proof, higher technology which will keep you going for many, many years?" he stated.

Stringer went on to concede that Hollywood movie studios, currently divided over whether to support Blu-Ray or Toshiba's rival HD-DVD format, could ultimately determine who wins the next-gen war.

However, the Sony CEO believes that film execs are "beginning to sense, in Blu-Ray, that the pendulum is swinging, and swinging for a clear reason" - namely that Blu-Ray discs can store more data.