PlayStation 4 console priced cheaper than Xbox One

Sony is set to sell the PlayStation 4 for a cheaper price than Microsoft's rival Xbox One.

The Japanese firm announced at the E3 trade show that its machine would be sold for £349 in the UK, $399 in the US and 399 euros across Europe.

It added that it would not impose restrictions on second-hand games.

Sony also unveiled what its box would look like, having previously kept the design under wraps at its February PS4 press conference.

For many in the audience at the Los Angeles event, the scale of the price difference came as the biggest shock.

Earlier in the day Microsoft had revealed its new console would cost £429 in the UK, $499 in the US and 499 euros.

"Clearly the big headline is that the PlayStation is going to be $100 less than the Xbox One when they come out in the US," Stephen Totilo, editor-in-chief of the gaming news site Kotaku, told the BBC.

"Microsoft is going to need to look again at its price or explain why it offers better value, such as the inclusion of its Kinect sensor.

View from E3

Dave LeeLos Angeles

If console battles were decided by the frequency and volume of whoops and cheers from excitable gaming fanatics, then Sony has won it hands down.

The biggest of all was about price. The PS4 will cost $399 or £349, a price point which drew gasps and then cheers from the audience in Los Angeles.

Cost aside, it was Sony's stance on DRM - digital rights management - which also drew huge applause.

"PS4 will not impose any new restrictions on your use of PS4 game discs," said Jack Tretton, boss of Sony Computer Entertainment America.

It was a cheer for what his audience saw as basic right.

Unlike Microsoft, however, Sony has still to provide a launch date, indicating only that the PS4 would be released in time for the "holidays" - a reference to Christmas.

"Of course, in the short-term it may not matter too much because when new consoles launch, supply is typically limited and hardcore gamers will pay anything to snatch them up. But six months or a year later on it will make a difference and Microsoft may feel at that point that it needs to match price with Sony."

Second-hand games

Sony also sought to distinguish its games machine by announcing it would not introduce any new restrictions on pre-owned disc-based games bought from friends or retailers, nor would it require users to regularly authenticate their machines via the internet to allow games to continue being played.

By contrast, Microsoft has introduced limitations on who consumers can buy second-hand titles from and has introduced a requirement to connect to the net once every 24-hours to play games on the Xbox One.

"With Sony continually pushing their gaming credentials and the development of the PlayStation brand for gamers throughout their presentation - it has very publicly slapped Microsoft across the face," said Alex Simmons, UK Editor-in-Chief of news site IGN.com.

"Talk of restrictions on the sale of pre-owned games and a requirement for an internet connection have been two of the largest consumer concerns surrounding the next-generation consoles."