The head of Microsoft Corp's Xbox game console business said on Thursday the company's main benchmark when it comes to pricing would remain Sony Corp (6758.T) and not Nintendo Co Ltd (7974.OS).

The comments from Robbie Bach, Microsoft's chief Xbox officer, followed a price cut by Nintendo in the United States on its GameCube console to $99 from $149 in a move aimed at building momentum for the crucial holiday season.

"We've been selling at a price premium to GameCube since the first day and I don't think that's going to change," Bach said at a news conference in Tokyo.

The Nintendo price cut makes the GameCube $80 cheaper than the second-placed Xbox or Sony's market-leading PlayStation 2 (news - web sites) (PS2), both of which start at $179.

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