Sony takes on Microsoft, prices new PS4 below Xbox One

Sony Corp on Monday priced its latest PlayStation 4 console $100 lower than the new Xbox One by rival Microsoft Corp as competition for gamers' pockets intensifies ahead of the year-end holidays and gift-giving season.

Sony said it would sell the latest PlayStation model for $399 late in the year shortly after Microsoft announced a $499 price tag for its first new Xbox in eight years and said it would go on sale in the United States in November.

Sony also drew cheers from the audience at the Electronic Entertainment Expo (E3) in Los Angeles when it said the PS4 would run second-hand games and did not require an always-on Internet connection.

Microsoft had earlier elicited groans from gamers when it announced restrictions on used games for the Xbox One and said players had to log onto the Internet for authentication.

"The PlayStation 4 won't impose any new restrictions on used games," said Jack Tretton, president and CEO of Sony Computer Entertainment America as the audience whistled and applauded.

Microsoft and Sony hope the consoles will attract new fans and retain users who are increasingly playing games on smartphones and other mobile devices, gradually diminishing the $66 billion video game business. Both companies are also offering more entertainment options.

:story: Yahoo News