Sony just announced a Play Station 2 price reduction of $100. It may be time to buy one, and sell your X-Box because I say the PS2 is going to win this battle. Sega couldn’t take it, and I doubt that can Microsoft will stay in the arena too long. Though, Micro$oft, full of cash, is probably not the best company to start a price war with. Still, Microsoft reportedly loses $87 per box at the current price – how much can they afford to lose? A lot would be the correct answer.
Salted Wound
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Of course you know that now Mickeysoft has reduced the price of the X-Box by $100 also…
FWIW, the console makers always lose money on the individual boxes. The games are where the money is. So now that Sega isn’t making hardware but is making games for Playstation, etc. they’ll probably make more money than they ever did before.