Microsoft have announced that from tomorrow the Xbox retail price across the United States of America will be $149.99 - a cut of nearly $30 on the previous price.

Several Xbox games are also seeing a price reduction in what Microsoft claim to be an attempt to go "one step further in broadening the appeal of Xbox". Project Gotham Racing 2, Crimson Skies, and Counter Strike will receive new $29.99 prices, and karaoke title Xbox Music Mixer will retail for a stunningly low $19.99 alongside Voodoo Vince and Grabbed by the Ghoulies.

As usual with price cuts from one console manufacturer, it usually causes a knock-on effect with the others (in this case Sony and Nintendo) following a matter of days later with their own announcements, in an effort to keep up if not totally out-do their rivals, so we're expecting it highly likely that Sony will confirm a price cut or possible software bundle for the PlayStation 2 shortly.

What is more interesting for UK gamers though is that it may also open the way for price cuts over here in Europe - the prospect of some of the more recent software releases being slashed in price certainly appeals.