Microsoft has slashed the European price of its Xbox games console. In the UK, where it only went on sale last month, the price has fallen from £299 to £199. The company is to offer customers who bought the console at the original price two free games and an extra controller. Microsoft has made a similar price cut in Australia where customers can now get the machine for 399 Aus Dollar. No news has yet been released regarding further price cuts outside Europe.
The price reduction follows poor sales of the console in Europe and Japan where it has sold only 190,000 units – 60,000 short of the 250,000 machines that were available there at launch.
Meanwhile Sony is in the process of developing a new, more cost-efficient processor for PS2 that will combine both the Emotion Engine and Graphic Synthesizer into a single 0.13 micron chip. This should it allow it to produce cheaper PS2s and pass the cost reduction to the consumer.