The No. 3 player in the video-game sector slashed the price of the Xbox by $20 yesterday, in response to Sony knocking down the price of the Playstation 2 on Tuesday.
“It will help Microsoft’s audience, but Microsoft is still losing just as much money this year as last year,” said Richard Doherty, an analyst with Envisioneering.
The price cut is just the latest among the game-player makers who routinely cut prices on consoles during the annual Electronic Entertainment Expo trade show, which is being held this week in Los Angeles.
The software giant cut its price to $179.99, down from $199 after Sony said it would sell its unit for $200 – including the modem, which allows users to go online to play Internet-based video games. Sony will sell the console for $180 without the modem.
Xbox has lagged far behind Sony’s Playstation 2, and has been forced to match its rival on pricing, in an effort to lure users to its consoles.
