Thanks to Matt & Mith for the heads up.
Microsoft has slashed the price of the Xbox almost 40 per cent in a bid to revive flagging sales. The Xbox, which launched in Australia at $649 just over a month ago, will now cost $399. The dramatic price cut makes the Xbox $100 cheaper than its closest rival, Sony PlayStation 2, and the same price as Nintendo"s GameCube, due to launch in May. A similar price cut in Europe brings the Xbox to £199 or 299 euros.
Xbox director Alan Bowman said that the price cut was a "strategic, competitive decision" and one that would benefit customers.
"The fact is our pricing here had become uncompetitive and, we felt, an obstacle to the Xbox experience," Mr Bowman said.
"Since our launch the market has changed - and will continue to change - and we are now being unashamedly aggressive in changing it ourselves."
Mr Bowman said the price drop would take effect on April 26 and any customers who had already purchased the Xbox at full price would receive $250 worth of Xbox products as a gift.