It doesn't look as though Microsoft is letting Sony steal all the thunder, as the headline-shattering news of the PlayStation 2's long-awaited price-drop to $99 has aroused the software giant's attention. To help combat the latest volley by the Japanese giant, it looks like Microsoft has intents to do some price-dropping of their own with the Xbox 360.

It won't take the second-generation Xbox console 9 years to do it, either, as the Xbox 360 is expected to drop its $199 retail tag from $199 to the considerably lower $129, taking the sweet spot once occupied by the PlayStation 2. This represents a massive $70 (US dollars) drop for the Acade Unit, which ships without a hard drive. No word yet if Microsoft plans to follow suit with their Pro Console (currently $299 w/60 GB) or the struggling Elite console ($399 w/120 GB). This allows Microsoft to keep bragging rights as the current-generation's most inexpensive console, with the Nintendo Wii sticking with its original $249 price, and the PlayStation 3 console at $399.

Leaked advertisements on the internet seem to confirm the Xbox 360's price reduction, which directly follows the April 1st price-reduction of the PlayStation 2 unit. Rumors had pegged Sony to drop the retail price of their third-place PlayStation 3 console, which is the only current-generation gaming machine to see yearly sales drops since its November 2006 release. Currently, the Xbox 360 is the second most-popular gaming console with worldwide sales of nearly 30 million units sold. The Nintendo Wii remains the most popular choice, having sold nearly 50 million units worldwide, despite a one-year disadvantage over Microsoft's machine.

No word yet as to when Microsoft plans to unveil the price-reduction, but sources put the date somewhere before Friday, April 10th, just before the lucrative Easter Shopping season and just prior to Good Friday.


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