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: CNN.

Thats interesting if the Xbox2 would be on shelves 1yr before PS3. I wonder if it would be better or worse for Sony. I recon better, because once it comes out, it'll be that much better [becasue they had that extra year to make it that much better)

Well, time to let my girls upgrade from my "old" "original" Nintendo to something a tad better, eh?

Thats not what happened with Sony's release of both the PS1 and PS2, their first to market move gave them huge market share with PS1 in the 32bit world (before Nintendo could release the N64 "Ultra 64") and Sony pretty much knocked Sega out with its PS2 launch, which if I'm not mistaken has more market share than the X-Box or GameCube.

If only International prices would affect other countries such as mine... where xbox is still 250-400 dollars...