It’s been a solid war and a good fight between Microsoft’s Xbox One and Sony’s Playstation 4 since their release last November. Although Xbox loyalists would disagree, there is a clear winner in the war and that is the Playstation 4. Now don’t get me wrong, Xbox One isn’t doing bad by any stretch of the imagination but Microsoft is having a tough time closing the gap between the fourth gen consoles.

Microsoft is feeling the threat of the impending launch of the Playstation 4 in Japan on February 22nd. Sony is hoping that customers in their home country will flock to the system when it is released later this month. The Playstation 4 already has a huge advantage on store shelves as it retails for $100 less than the Xbox One. Not only that but new releases like Tomb Raider, are showing that the Playstation 4 may be the superior system. The latest Tomb Raider game plays at 60 frames per second (FPS) on the Playstation 4 and just 30 FPS on the Xbox One.

So how is Microsoft supposed to compete?

Every analyst in the world seems to agree that Microsoft needs a price change, at least to level the playing field in the price war. Make no bones about it though we have both consoles in our home and aside from Tomb Raider, there’s virtually no difference in game play. We do play sports games on the Xbox One and action games on the PS4. But that’s just in our home.

Geek.com reports that there are significant rumors floating around about the Xbox One. There are some sites reporting that there will be a white Xbox One with a 1Tb hard drive, while other sites are reporting that Microsoft is working on a way to source parts cheaper and lower the price of a new Xbox One. One website reports that the new 1TB white model will come in at the $499 price, dropping the original Xbox One to $399 to directly compete with the PS4.

Geek.com notes that some of these rumor leaking websites have been served legally by Microsoft which adds an air of legitimacy to the rumors. Geek.com sites a reliable source saying that there will be a price cut in some form or another to the $399 price point at some point this year however we’re only in month two of 2014. All along, sources have told us that they expect a $399 Xbox One no later than the 2014 holiday season, which of course is still 10 months away.