Getting the jump on the impending Xbox price cut, Sony cuts the PS2 price by a third ...
Not content to make an announcement at E3, Sony slashed $100 off the price of its PlayStation 2 console, making the price $199 effective immediately.
It has been rumored that Microsoft was going to cut the Xbox price by $100 during next week's E3 conference, either during their press event on Monday, or at the start of the show Wednesday. With a more than 10:1 lead over Microsoft and Nintendo, it's likely that Sony made this cut now to further establish their dominance over the competition.
Nintendo has stated that they would consider a price cut on the GameCube console, especially if Sony were to come down to the GameCube's $199 price point.
Also of note, Sony has said to be looking at its software pricing, and may cut $10 off the standard $49.99 price point for PS2 software. It's unknown if Microsoft and Nintendo would match software prices as well. It's widely known that margins on hardware are slim, but are made up on the software sales. Cutting software prices early in the Xbox or GameCube's life cycle could hinder their profit making, especially for Microsoft, who is rumored to have just recently started breaking even on the hardware after taking significant losses in order to establish themselves in the marketplace.
Sony is also planning to cut its accessory and controller pricing, a move that might affect Microsoft and Nintendo as well, but more likely Nintendo at this point. If Nintendo cuts the GameCube price to a rumored $149, it makes a $30 controller less attractive. Also, Nintendo has additional hardware coming soon, such as the Wave Bird, Modem, and Broadband adapters, all with announced price points of $34.99.
More news as it comes.
