Xbox price to drop this week

Thirteen months on, £170 cheaper

Microsoft is set to cut the price of the Xbox to £129.99 in the UK this week according to reports from retail sources, in a move which will see the console matching the hardware price of the GameCube.

Although Microsoft would neither confirm nor deny the story at the time of writing, stating that the company does not comment on rumours and speculation, certain key retailers in the UK have been openly telling customers interested in the console that the price will come down by Friday - with corresponding price cuts due for the two Xbox software bundles.

The Sega pack, featuring the console alongside Sega GT and Jet Set Radio Future, will cost £149.99, while a new bundle featuring the console, Halo and Metal Gear Solid 2: Substance seems set to replace the Halo and Splinter Cell bundle, and is priced at £169.99.

The move comes after a month where Nintendo saw a significant revival in the fortunes of the GameCube thanks to unofficial discounting by retailers including Argos and Dixons Group. The price cut of the Xbox will put significant additional pressure on Nintendo to make an official price cut to the Cube - but what will be particularly interesting to note will be Sony's reaction, as the PS2 is now isolated as the most expensive console by far, at £169.99.

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