Microsoft and Sony yesterday trimmed the prices of the Xbox and PlayStation 2 as the pair square up against each other for the coming Christmas sales period - not to mention couch potatoes who've spent the summer on the sofa, eyes glued to the Olympics.

In the UK, the Xbox will retail for £100 ($182) - or €150 ($185) on the continent.

Sony followed Microsoft by knocking the PS2 down to £102 ($186) in the UK and €150 in the rest of mainland Europe. Sony's price cut takes place immediately - Microsoft's come into force on Friday, 27 August.

Earlier this week, market watcher IDG Entertainment reported that industry executives are calling for such price cuts around the world to drive demand through autumn and winter. Both Sony and Microsoft cut US console prices a couple of months ago, but the games biz believes they need to go further. ®

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