Microsoft and Sony have both reduced the price of their games consoles in an attempt to increase share in the increasingly competitive console market.
Sony announced on Tuesday it is to reduce the price of the PSone to around $49. The company hopes that this price reduction will attract a younger generation of gamers. Sony has also reduced the cost of the PlayStation 2 by a third in the North American market. The price of the PlayStation 2 in the European market will remain unchanged following a number of price cuts during the last year.
Microsoft reacted to Sony’s price cuts by slashing the price of the Xbox console to $199.99 in North Americam matching the PS2. Microsoft’s price cuts are to be backed up by a multi million dollar marketing campaign, which will begin this weekend. The price of the Xbox will also fall in the Japanese market, but will remain the same in Europe.