Xbox slashes price in battle of the gaming machines

By ELIZABETH BINNING

Microsoft has slashed the price of its Xbox gaming machine, making it $70 cheaper than the market leader, Sony's PlayStation 2.

From today Xbox consoles will sell for $299.

Xbox spokesman Wilf Robinson said the price reduction was an aggressive attempt to gain a larger portion of the market.

"It's all about accessibility - we don't want price to be an obstacle to the Xbox experience."

When PlayStation 2 went on sale in New Zealand it cost about $1000, but quickly dropped in price.

When Xbox followed it, in October 2002, it sold for about $700.

The two have been competing ever since. When Sony dropped its price by 20 per cent in May last year, Microsoft immediately matched it.

Central Park Interactive general manager Bryan Inglis said that although the sales gap between the two was narrowing, PlayStation 2 was still twice as popular as Xbox.

But with today's new drop, the trend could go in Xbox's favour.

"I think one thing that will be interesting is to see what Sony now does in retaliation," he said.

"I certainly don't think they'll sit around for too long at their price."

But Sony's computer entertainment managing director, Steve Dykes, said the company would not be matching the Xbox price.

Mr Dykes said PS2 was a market leader which had sold 210,000 consoles in New Zealand since its arrival three years ago.

Xbox had sold 75,000 machines.

"PS2 has never been challenged by Xbox. We don't feel the need to follow their move," said Mr Dykes.

"We have our own price offer on the market which is value-based."

That offer sells the console, a game and two control pads for $369.