Microsoft announced that beginning August 27, the Xbox would drop to 149.99 Euros on mainland Europe and 99.99 pounds in the United Kingdom. Sony immediately followed suit dropping the price of the PS2 to 149-159 Euros and 105 respectively. However, Sony’s reduced price is effective immediately.
This is the same response Sony had to Microsoft when they announced a price cut in the United States earlier this year. There has been no word whether or not Nintendo would drop the price of the Gamecube in Europe as well.
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