Sony made the first move, stating that effective August 30, the PS2 price would drop by 15 percent in the UK to 169.99 pounds, and to 249-259 euros on the continent.
Microsoft quickly followed suit, announcing an even more aggressive price cut within the hour. The Xbox price was slashed from 299 euros down to 249 euros. The new Xbox price in the UK will be 159.99 pounds -- making it less expensive than the PS2 in the UK for the first time. Like the Sony price cut, the new Xbox prices will take effect on August 30.