Microsoft have announced today that its Xbox console will drop in price to 129.99.

    "We had a great Christmas and firmly established ourselves as the number-two console player in this region," said Peter Moore, Corporate Vice President, Worldwide Retail Sales and Marketing, Home and Entertainment Division, Microsoft. "We outsold some very long-established competition and enjoyed near sell-out status, gaining market share along the way. This price change shows we are not content to rest on our laurels - we will continue to be aggressive in building upon this momentum throughout the year."
The price drop will mean that the console is now the same price as a GameCube.