Microsoft 's Peter Moore has sensationally suggested that Sony 's PlayStation 3 strategy is "failing" in its homeland. "You can bet that Sony built a long-term business plan about being successful in Japan," Moore told GameDaily , "and that business plan is crumbling."

PlayStation 3 is failing

Moore made the comment at this year's E3 when asked about the underperformance of the Xbox 360 in Japan. He responded by citing the failure of the PS3 when compared to Nintendo's Wii. "That's probably a better question for Sony, who's getting outsold by what, 6-to-1?"

Moore's comments are the latest bit of mud-slinging between Sony and Microsoft. Last week, Sony's VP of marketing, Peter Dillie, suggested that the Xbox 360 was fatally flawed and "doesn't even work" .

Microsoft has always acknowledged that Japan would be a hard country for the Xbox 360 to break. According to Japanese sales data on Next Gen , the Wii sold 75,279 units compared to 12,691 for the PS3 and 2,370 for the Xbox 360. Nevertheless, Moore and Microsoft remain optimistic.

"I built a business plan [for Japan]," said Moore, "but I don't think my expectations in Japan were anything close to what Sony's expectations are. They are failing. They're missing their plan by much more than I'm missing my plan."