Following Sony slashing the price of the PlayStation 3 yesterday, industry analysts have said a price cut from Microsoft is imminent on its Xbox 360 Elite SKU, as well as the expected phase out of the 60GB Premium console, leaving both format-holders evenly matched.

"Both Sony and Microsoft are acting like 12th round boxers, so exhausted - in this case, financially exhausted - over the three year battle for next-generation supremacy, that neither are likely to deviate from the $299 price point for some time," commented Jesse Divnich, director of analyst services at EEDAR.

"The $299 price point will likely become the new standard for the next-generation consoles for the next year. It is possible that both consoles may reach a $249 price point 12 months from now, but that will likely be the lowest prices will get in the next two years.

"Going forward, both console manufacturers will focus more on delivering differentiating products and services to increase the value of their consoles," he added.

Colin Sebastian, of Lazard Capital Markets, said the firm expects Microsoft to now cut hardware prices, possibly in time for the release of the next title in the Halo series.

"In addition to Sony’s PS3 pricing action, we continue to believe Xbox 360 price reductions are under consideration this summer, which would be well timed with the September 22 launch of Halo ODST," he noted.