There's been rumours of an Xbox price drop doing the rounds since the start of the week, and it'd appear that retailers are also expecting Microsoft's console to be chopped in price yet further.

Numerous retailers are believed to have been discussing a price cut, which will see the console cut to 129 on Friday - however Microsoft have refused to comment on the matter.

At the moment it's all rumours, but it seems highly likely that the console will be dropped to match the price of Nintendo's Gamecube, which itself saw a massive increase in sales when retailers such as Dixons and Argos slashed the price a couple of weeks ago.

A price cut by electrical retailer Comet last October saw the Xbox slashed to 128.89, which caused many retailers to adjust their own prices, and was soon followed by special bundles offering free games on the run up to Christmas.

The question is, if Microsoft do cut the price of Xbox in the UK, will Sony follow with their PlayStation 2, which would be some 40 more than either Gamecube or Xbox if it doesn't come down in price. As soon as anything is confirmed, we'll let you know.

Update: Microsoft confirm Xbox now 129.99

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