equal digital-media footing

Microsoft is raising Xbox 360 forecasts in Japan amid rumors Sony might drop the price of its PlayStation 3 even more. Meanwhile, Microsoft is planning to release an Xbox 360 with a Blu-ray drive, putting it on more equal digital-media footing with its main rival.

And as the holiday shopping season approaches, Sony and Microsoft are preparing to launch virtual communities. Sony has delayed its Home virtual world for the PS3 twice already, but company officials said it will be launched later this year. Microsoft plans to start its New Xbox Experience virtual world on Nov. 19.