Xbox faces price cuts in US

HOT ON THE TAIL of the news that Microsoft is cutting the price of the Xbox in Europe, analysts are doom-saying for the US price. According to Reuters, the big prediction is that the Vole will be forced to cut the Xbox down to $149.

You might think that could cause a spike in sales of the Xbox over the PS2 but those same analysts reckon that Sony would simultaneously cut the price of its console. Sony has much more room to spare revenue wise, the PS2 is much cheaper to make.

With the price of the Xbox dropping so far, several readers have written in to suggest that putting a mod chip into the machines and then flogging them off as Linux boxes could become commercially viable. Especially for use in clusters. That would very likely be illegal in the US with the DMCA in place but everywhere else in the world would have no problems. It would also very likely drive the Vole into a frenzy. µ

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Microsoft drops Xbox price again in Europe