Hot on Sony's heels, Microsoft announced that they are also chopping the US price of the XBox to US$199 from US$299. Just one day after Sony, Microsoft decided they had to be quick in order to stay alive in the console market.
Microsoft also announced plans to lower the price of the XBox in Japan to US$193 from the current US$270. It is a very rational move considering that the XBox has met with a very hesitant reception in the land of the rising sun.
This move brings the three main rivals in console hardware, Sony, Microsoft and Nintendo, offering their products for the same price. This clearly means that Nintendo are currently in an uncomfortable position since their console is stripped of the luxuries carried by its other two rivals. Nintendo had announced that they had no plans to lower the price of the GameCube but current developments suggest that they will proceed with some form of price cut. If they do not, they will have to solely rely on their admitedly strong fan loyalty in order to achieve their sales targets.
With prices evening out it is thought that the new consoles will appeal to a lrger market and this in turn means that the real battle will be fought in the content sector. Sony already have a wide variety of titles, catering to the needs of almost any age group. Nintendo are also well equipped to deal with a large and varied consumer range, all that Microsoft know have to do is convince future customers that they will offer a wide and attractive selection of titles for their console.