Rumor - Microsoft to cut Xbox prices in response to Sony

So the PS3 is getting a nice $100 price cut in August, Xbox 360s just got their warranties extended, and now Microsoft is rumored to cut prices soon. Man, it's a good time to be a gamer.

Analyst Michael Patcher is predicting that Microsoft will follow up Sony's price cut with one of their own, on all Xbox 360 models. The Elite would obviously see the largest cut, coming down $80 to $399. Both the Core and Premium would likely see $50 cuts, bringing the cheapest system in line with the price of Nindendo's Wii.

These price cuts would likely only affect the US market at this time. If these cuts are going to come, we'll likely hear an announcement of some sort from Microsoft during E3 this week.

Microsoft to slash price of Xbox 360 – Pachter [via gamesindustry]