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  Price cuts as Xbox closes on PS2
Time: 13:06 EST/18:06 GMT | News Source: Australian IT | Posted By: Brian Kvalheim

MICROSOFT and Sony have hit the Australian game console market with identical price cuts as the Xbox reels in PlayStation 2's sales lead.

Both Microsoft and Sony cut the recommended retail price on their respective consoles from $399 to $329, with the announcements made within hours of each other.

Microsoft said the Xbox price cut brought Australian pricing into line with Europe and the US. Similarly, Sony computer entertainment managing director Michael Ephraim said: "Local market conditions have allowed us to facilitate more affordable prices in Australia".

Microsoft's Xbox has been making steady progress against the PlayStation 2 (PS2) in the Australian market, said Phil Burnham, research director with market analyst Inform.
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