Microsoft Reduces XBox's Price by a Third

Two days after Sony's Playstation 2 had its price reduced, Microsoft cut XBox's price by one third to avoid losing market share in the game console niche. Now Americans pay only $200 for a XBox, $100 less than previously charged.

After Microsoft joined the console game market some months ago, a price war started among the big three console game producers: Sony, Nintendo and Microsoft. The video game market is worth 6 billion dollars.

At the moment, the Playstation 2 and the XBox cost the same in the US, $200, but the Gamecube console from Nintendo is still being sold for the old price. Nintendo declared it's not considering a price reduction at the moment.