Microsoft confirms Xbox announcement for tomorrow

Microsoft Australia confirmed today that it will be making an announcement tomorrow relating to its video game system Xbox, following predictions by US analysts over the weekend that a price cut for the games console is imminent.Spokespeople for Microsoft remain tight-lipped about the details of the announcement, however US analyst Tony Gikas has stated that he expects Microsoft will cut the price of its Xbox game console by US$30.

Microsoft Australia confirmed today that it will be making an announcement tomorrow relating to its video game system Xbox, following predictions by US analysts over the weekend that a price cut for the games console is imminent.

Spokespeople for Microsoft remain tight-lipped about the details of the announcement, however US analyst Tony Gikas has stated that he expects Microsoft will cut the price of its Xbox game console by US$30.

The Xbox consoles debuted on the Australian market at a retail price of AU$649, with the price dropping to AU$399 mid 2002.

The console currently sells for a standalone price of AU$299, however bundle price packages that include games and various pieces of hardware are also on sale.

First-release Xbox games retail from around AU$89 to AU$99 depending on the vendor; there has been no mention of a reduction in games prices.

Microsoft's biggest competitor in gaming, Sony Playstation 2 (PS2), says it has no plans to reduce the price of its console if Microsoft lowers Xbox prices.

A spokesperson from Sony Computer Entertainment Australia said the company already has a discount offering available, with a retail price bundle of AU$329.95 that includes a platinum game and DVD remote, equating to saving of around AU$100.