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Consumers Benefit From Console Wars

Time: 03:51 EST/08:51 GMT | News Source: Associated Press | Posted By: Alex Harris

The video-game console price war is playing into the hands of consumers. Microsoft Corp. announced Wednesday it was cutting the U.S. price of its Xbox video game console from $299 to $199, mirroring a move announced a day earlier by console leader Sony for its PlayStation2. Sony also lowered the price of the less advanced PS one console to $49 from $99.

Meanwhile, officials at Nintendo said they won't budge on the $199 price tag for GameCube. Nintendo executives believe the company's lineup of popular characters, from Mario to Pikachu, gives it an advantage over rivals. But P.G. McNealy, an analyst at resarch firm Gartner G2, said it is only a matter of time before Nintendo lowers its price, too. The timing of the price cuts from Sony, whose PlayStation2 was launched in North America back in October 2000, did not necessarily surprise analysts. It was the severity of the price cuts that was unexpected.

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