That is too funny, I read the whole article, Gamespot is who said that, they run that they are "closing the gap" in the title, and that was never even said in the interview at all.
It's a shame that Gamespot ran with that headline and inserted that text, because Microsoft is doing some very interesting things very early in the cycle to try and compete worthy of discussion.
There was a $100 retail pricing gap at launch between the two boxes in the US. Since last March, however, the average pricing gap has been shrinking.
And In the last two months (Sept-Oct) the PS4 has actually had a very slight higher average retail price than the Xbox One.
This is what the guy is talking about. Closing that price gap is what MS has been doing to try and "catch up" with Sony's pricing strategy.
Gamespot really doing its readers a bit of a disservice here. Oh well. Would be cool to talk about if it's going to make any difference, or how low MS would have to go to gain traction.