Speaking to MCV SCEE president David Reeves has revealed that Sony believes the PlayStation 3 is approximately 300,000 units ahead of the Xbox 360 in PAL territories and sees no reason to lower the price of the console, despite rumours to the contrary.

"No we are not going to go down in price; neither are we going to go down in price on PS3 in spring time either. Absolutely not, whatever you might have heard to the contrary," said Reeves.

He added: "I am confident that in PAL territories our installed base is 300,000 units ahead of Xbox 360."

Reeves explained that just because Sony followed one model with the previous PlayStation consoles we shouldn't expect the same with the PS3.

"When we came into the industry we started at zero. And we had to have a model that offered price elasticity. As soon as we got the manufacturing price down on PSOne we lowered the price. Same with PS2. But we're not doing that on PS3 - that's not the model, even if people are expecting it," said Reeves.

"We're relying on the fact that the industry will keep growing and while we might have a comparatively smaller share of the market we will have higher sales. PS3 is tracking where PS2 was at the same point in its life. The value added strategy will continue for some years to come."

He concluded: "Next year we are probably going to be a little bit more aggressive when we reach the break-even point."

Are you waiting for a PS3 price cut or do you feel its current £299 price is good value? Let us know in the comments section below.