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Nintendo may cut to challenge Sony

If PlayStation 2 drops, GameCube may follow, a senior official reveals

Reuters is reporting that Nintendo will cut the price of GameCube if Sony drops the PlayStation 2 from $299 to $199 or $249 at E3. Although marketing veepee George Harrison admitted that the company hasn't made a decision specifically relating to the price cut yet, a big PS2 cut would likely prompt some sort of retaliatory action. PlayStation 2 is at its most expensive in the States, where it costs several pounds/Euros and several hundred yen more than its overseas equivalent. The price was originally set at the North American launch in the last quarter of 2000, and many have speculated that it's high time for a big cut. In terms of software, neither company plans to change its standard retail price, but again, Nintendo is willing to consider a discount program for best-selling games further down the road to rival Sony's. Related Feature - PS2 price drop official

Source - Reuters