Xbox for $99? Xbox 2 in 2005?

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Microsoft's Xbox may be on the verge of a substantial price cut, falling from $179 to $99 by Labor Day, according to P.J. McNealy, an analyst with American Technology Research.

McNealy also believes Microsoft will launch its next generation console in late 2005 a year earlier than has been previously rumored. That would put the Xbox 2 on store shelves up to a full year before Sony's PlayStation 3. Microsoft, when asked about the report, said it does not comment on rumors and speculation.

Read more: [URL=http://money.cnn.com/2004/01/28/commentary/game_over/column_gaming/index.htm?cnn=yes]CNN[/URL].

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