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  Analysts: Xbox U.S. Price Dropping to $199
Time: 15:16 EST/20:16 GMT | News Source: GameSpyDaily | Posted By: Alex Harris

With the Electronic Entertainment Expo two weeks out, Microsoft let the proverbial cat out of the bag earlier this week, indicating to retailers and analysts that the company will soon slash the U.S. price of the Xbox console to $199. The price drop is expected to take effect on May 23, right in the middle of E3. “The price drop for the Xbox isn’t going to be a shock to anyone in the industry,” said Edward Williams an analyst with Gerard Klauer Mattison. “Sales of the Xbox have slowed in March and April and retailers are becoming more vocal for the need for a price cut.”

Two other analysts, who asked to remain anonymous, confirmed the time frame based on the Microsoft conference call. Williams said the expected Xbox price cut will cause a ripple effect at Sony, who will also lower the price of its PlayStation 2 console system.

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