As expected, with the release of the Xbox 360 from Microsoft, Sony has some planning to do. The PS3 is due out sometime this year and PS2 sales are slumping. So Sony will most likely cut the price of the PS2 it seems from $150 to $130 to attract more buyers who can't afford the high-end 360 or PS3. But Microsoft isn't just sitting around either. Rumor has it that Microsoft will lower the price for the original Xbox to $99. A huge war between these two companies is heating up and it's all about the gamers and price points. Expect to see dips in prices around May or E3. Ars Technica has a nice little idea of what the market will look like once the price reductions take place:

  • PS3 - Freakin' expensive
  • Xbox 360 - US$299 or US$399
  • Revolution - US$299 or less
  • PSP - US$249
  • PS2 - US$130
  • Nintendo DS - US$129
  • Xbox - US$99
  • Gamecube - US$99
  • Not a bad guesstimate. We think that Nintendo will probably combat a little more by lowering the price of the DS to $99 and lowering the Game Boy Micro even more.
  • Price cuts coming for current consoles? [Ars Technica]

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