For months now, many have speculated that Microsoft would deliberately cut the price on the core pack, the premium version of Xbox 360 or both to coincide with the launch of the PlayStation 3 this November, and therefore steal a bit of Sony's thunder.

We asked Microsoft Game Studios head Shane Kim about this directly in an E3 interview, and while he said "we feel very good about where we are in terms of pricing and the value that we offer customers," he then added, "I guess it's always an option that we have."

Now, however, Microsoft has come out and clearly stated that it won't be dropping the price on its next-gen console anytime soon. Microsoft group manager of PR John Porcaro stated on gamerscoreblog.com, "As you're all aware, there have been rumors of a price drop for the Xbox 360 coming along later this year. The official word from folks in the know is that there are currently no plans for a price drop this fall." [Note: emphasis added by Porcaro.]

He continued, "If you've been holding off picking one up because you think they'll be cheaper in the future, or they've been hard to find, or because you're too busy catching up on past episodes of Lost, wait no longer!"

Porcaro then went off into what he called a "marketing-speak craze" and took a thinly-veiled jab at Sony in the process as well.

"Just think... this holiday as some people go broke because they're forced to buy movie technology with their game console, you'll be choosing from a 160 games, including Gears of War, Madden 07, Splinter Cell, Forza 2, and lots more. Oh and later on? How about Mass Effect, Halo 3, and Grand Theft Auto for starters," he said.

So there you have it. No price cut. It certainly makes sense; with Sony's $500 and $600 SKUs, MS still has a significant $200 price advantage for its respective core and premium Xbox 360 offerings. Why should Microsoft lose yet more money on hardware by slashing price tags prematurely when the company will likely be able to stay quite competitive at the current MSRP?