Xbox 360: An insider's story

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.

Click here for the second part of our interview with Dean Takahashi, where he talks Halo 3, online gaming and Xbox 360's next-gen rivals.

The Xbox 360 Uncloaked is currently available for $14.95 fromthe SpiderWorks website, and you can read Dean Takahashi's bloghere.