Microsoft has claimed that there's nothing PS3 can do in terms of 3D that the Xbox 360 can't emulate.
Speaking exclusively to CVG, Xbox global marketing boss Albert Penello said that Xbox 360 was "technically" ready for the 3D revolution.
However, the exec added that Xbox was "happy to follow" on the tech until player adoption rates made it worthwhile.
When asked if he was concerned that Sony had "got there first" with 3D tech, he replied:
"I'm not. We have 3D games - obviously the Avatar game came out last year - and the console fully supports 3D. But for us right now, we're more on the 3D input take, you know, revolutionising things with Kinect.
"We're going to take more of an attitude of seeing what the adoption looks like. Right now, there's nothing technically that we can't do on the 3D side - we already have games out there today.
"For us, it's more going to be let's see what the consumers say. Let's see what happens on the TV side and the sell-through side. It's something I think we're going to follow on, and that we're fine to follow on.
CVG then asked if Xbox 360 could do everything that PS3 can in terms of 3D.
"Yeah, that's true," said Pernello. "I think that when we decide we want to jump into 3D it'll be because the consumer's voted. But from a technical side, there's nothing about it we can't do. In fact, we're already doing it today."
Microsoft's big hardware announcement at E3 - the new 250GB 360 SKU - has gone down well with the media and gaming fans alike. Check out our 250GB Xbox Slim review for more.