It's been rumoured to have been on the cards for a number of weeks now, but this afternoon Microsoft and Sony have finally gone head to head with the latest round in the price war, and slashed the price of their Xbox and PlayStation 2 consoles.

The Xbox has dipped under the magic 100 level to 99.99 from August 27th, making a saving for gamers of nearly a quarter off of the 129.99 which it's currently selling for.

Sony meanwhile have announced that from today the PlayStation 2 console is dropping to 104.99, cutting the price by nearly a third from it's old 149.99 price point.

Both companies are quite rightly highlighting their line-up of games due between now and Christmas, with Sony having Gran Turismo 4, The Getaway: Black Monday, Singstar Party all on the way. Microsoft meanwhile have the massive Halo 2, Forza Motorsports and Fable, along with the new support from EA for Xbox Live which was recently announced to have gained over 1 million subscribers to the service.

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US Xbox price cut... Europe to follow...? (September 2003)
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