"The strategy of having a console that is $200 more expensive that has features that people don't potentially need or want but have to pay for - looking at [Sony's] sales numbers - I'd say it's probably not the winning strategy at this point, especially given the current economic situation," said Dennis in the wake of Microsoft announcing the biggest month in 360 history.
"Our strategy from the beginning was to have multiple SKUs with a very flexible offering so the customer can choose the experience that they want.
"If you don't need a hard drive, you're not forced to have one. If you don't need Wi-Fi, you're not forced to pay for one," he added.
NPD results for December show that Xbox 360 is currently outselling PS3 by a ratio of 2:1.
By Mike Bowden