GR: Will Microsoft drop Xbox 360 in price for the PS3 launch?
DT: I think that Microsoft is capable of doing it for PS3's launch in the autumn, but now it's a matter of strategy. If it sees sales start to drop at the time PS3 launches, or Wii launches, then it'll probably realize that it's time for a price cut. But Sony took the pressure off Microsoft having to cut Xbox 360's price by giving PS3 such a high price to begin with.
GR: Was Microsoft right to launch first?
DT: Yeah, it was probably right to launch in North America and Europe first; Japan should have come later, though. But all Microsoft planned on doing was to launch on time. It didn't have a specific strategy to launch first.
The company knew that it lost out last time by being late, and it just committed to not being late again - it didn't commit to being first, it just so happened that the other guys delayed again and made Xbox 360 first.