Sony announced on Tuesday it is to reduce the price of the PSone to around $49. The company hopes that this price reduction will attract a younger generation of gamers. Sony has also reduced the cost of the PlayStation 2 by a third in the North American market. The price of the PlayStation 2 in the European market will remain unchanged following a number of price cuts during the last year.
Microsoft reacted to Sony’s price cuts by slashing the price of the Xbox console to $199.99 in North Americam matching the PS2. Microsoft’s price cuts are to be backed up by a multi million dollar marketing campaign, which will begin this weekend. The price of the Xbox will also fall in the Japanese market, but will remain the same in Europe.
