NEWS - Thursday, August 19, 2004

Microsoft And Sony Battle Over Euro Price Cut

While another round of console price cuts don’t seem to be in the offing stateside as yet, Microsoft today kicked off a brief exchange over in Europe. After today’s cut, the Xbox now costs 99.99 pounds ($182) in the United Kingdom and 149.99 euros ($184) on the continent, and Sony has responded by knocking the PS2 down to a slightly higher price of 104.99 pounds ($191). Microsoft’s move is effective as of Friday, August 27, while Sony’s cut is effective immediately. Before today’s cuts, both the Xbox and PlayStation 2 were priced at 139.99 pounds ($255). Today’s cuts thus take a pretty significant whack at the cost of both consoles, but they still cost a fair bit more than what North American and Japanese gamers pay (although U.K. and European prices generally include a stiff value-added tax). We’ll look forward to seeing how Microsoft and Sony’s different pricing and timing strategies affect their sales in the coming fall, where both companies plan to push their platforms with several top-tier titles.


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