Microsoft have announced that the Xbox is to receive a price cut in America, in reaction to Sony cutting the price of the PlayStation 2 after yesterdays press conference in Los Angeles.

Xbox will now retail for $179.99 instead of the current $199.99, with the price cut taking immediate effect. Sony yesterday reduced the PS2 to $169 to help clear stocks of the console prior to the launching of the PlayStation 2 Online Pack, which will feature both a console and network adapter.

As ever with price cuts, where one company leads the others inevitably follow, and the focus will now turn to Nintendo's Gamecube, which currently retails at $149.95, without any form of network adapter bundled, and lower weekly sales figures than both the Xbox and PlayStation 2.

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