Microsoft have just announced that the Xbox is to be reduced in price to 159.99 from Friday 30th August, after the announcment by Sony earlier today that the PlayStation 2 would retail at 169.99 in the UK.

The price cut sees the Xbox priced at just over half of it's original launch figure (299), less than six months after the console launched in the UK, and follows the slashing of the price by 100 back in April to help boost sales.

"The video games industry is more robust than ever this year, and new consoles and games are expected to dominate Christmas wish lists," said Sandy Duncan, Vice President, Xbox Europe. "Xbox is extremely well-positioned to be at the top of those lists because it's the best value. The intense power and gaming experiences consumers get with Xbox is simply unsurpassed."

It was widely expected that as soon as one console's price was cut that the others would follow suit, as they did earlier in the year when Microsoft cut the Xbox price, causing Nintendo to reduce the Gamecube price before it'd even launched, as part of the fierce price war between the three companies.

Whether Nintendo will make price cuts to the Gamecube price is not yet known, but with ECTS starting tomorrow it'd be an ideal time for them to make their move, despite the fact that the Gamecube already costs 30 less than it's nearest priced rival, the Xbox.

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