Sony has finally launched the much-anticipated PlayStation 3 (PS3) in India but at a whopping price tag of Rs 39,990. Sony's price logic has come under the scanner as its nearest competitor, the Microsoft Xbox 360, is available at price variants of Rs 27,750 and Rs 19,990.

Why would the average gamer pay nearly Rs 40,000 for a console? Masaru Tamagawa, managing director, Sony India, justifies: "In a package that includes a 60 GB hard disk, a high definition (HD) Blu-ray optical drive, HD video output, Bluetooth wireless controllers and built in Wi-Fi adapter, the results can be an eye-popping multimedia reality for Indian enthusiasts."

Both Sony and Microsoft are seemingly besotted by the HDTV revolution that is expected to change the demographics of the entertainment sector.

Microsoft has already announced a new Xbox, Elite, at $479, that will come bundled with a 120 GB hard drive, as well as an HD multimedia interface (HDMI) port, an HDMI cable and a wireless remote.

"The India launch is on the cards and we will also launch our popular Xbox Live platform for the Indian gamers in a month's time," says Mohit Anand, country manager (entertainment and devices), Microsoft India.

India is projected to be a $300 million strong gaming market by 2009 and Xbox, launched almost six months back, has had an early start. Although console gaming can claim up to 20 per cent of this pie, it is still a big market for Microsoft and Sony.

Microsoft has shown its commitment to the domestic market by investing in marketing and local games content. Tamagawa did not disclose any signs of games being developed for Indian audiences, but added, "We will have an exclusive Sony PS3 store by the end of this year in India."

Beginning with 12 game titles, at an average price of Rs 2,799, Sony will have to match its might with the 40-odd game titles already in market (launched by Microsoft) on the Xbox 360 platform, priced between Rs 1,499 and Rs 2,510. The game begins now.