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Xbox Price Drop
May 14, 2003

Perhaps it was to offset the $20 price increase for Xbox Live Starter set or in response to Sony's price drop, either way, Microsoft officially announced that as of now, the Xbox will be priced at $179.99.  This once again puts the Xbox and Sony's PS2 at the same price.  Less than a day ago, Sony had dropped the price on their Playstation 2 that is currently in stores in an effort to clear inventory and make way for a newer version of the PS2 that will include an adapter for online play and the ability to play home-made DVDs.  It should be noted that Sony intends on charging $199 for the new bundle, meaning that the Xbox will be the cheaper of the two should that pricing plan hold up.

Retailers have been made aware of the price cut and the change can already be seen reflected on some websites.

While the drop from $199 to $179 isn't as huge as last year's drop of $299 to $199, Microsoft is hoping that it will help them gain ground on
Sony who has a huge lead in the home console race or at least help put some distance between them and Nintendo as they battle for second place.

"Our commitment to the consumer is to offer the best system at the best price with the best selection of software," notes Robbie Bach, senior vice president and chief Xbox officer at Microsoft's home and entertainment division. "This new price point for Xbox will bring the world's most innovative interactive entertainment system to the broadest audience."

Reported By: Siou Choy
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