Market doesn't need Blu-ray - MS

Microsoft has reignited its war of words with arch rival Sony following the launch of PlayStation 3 in Europe, with UK boss Neil Thompson attacking the system's price tag and Blu-ray functionality.

Speaking exclusively to GamesIndustry.biz, Thompson dismissed suggestions that the PlayStation 3's in-built Blu-ray drive gives the machine a tactical advantage over Xbox 360.

"Do I want to make people pay £200 extra for a machine with discs that have storage space I don't need? My answer's no, I don't need to do that today," Thompson said. "And I don’t think I’m going to need to do that for quite a while."

Head over to GamesIndustry.biz for the full report.