TOKYO (Reuters) - The head of Microsoft Corp's Xbox game console business said on Thursday the company's main benchmark when it comes to pricing would remain Sony Corp and not Nintendo Co Ltd.

The comments from Robbie Bach, Microsoft's chief Xbox officer, followed a price cut by Nintendo in the United States on its GameCube console to $99 from $149 in a move aimed at building momentum for the crucial holiday season.

"We've been selling at a price premium to GameCube since the first day and I don't think that's going to change," Bach said at a news conference in Tokyo.

Both Sony and Microsoft have announced special bundle packages for the holiday season that include free games -- offers that dashed widespread industry hopes the hardware makers would cut their prices.