Microsoft: No Plans for Xbox Price Drop

Will the Xbox see a price drop in response to the PS2's new $129 price tag? Microsoft isn't saying

Sony recently announced a new, lower price point for the PlayStation 2 -- $129.

But days after that announcement, a key question remains unanswered: Is Microsoft planning to drop the price of the original Xbox to match that of the PS2?

At $179, Microsoft's Xbox is still, by far, the most expensive current-generation console. Up to this point, Microsoft has slavishly followed Sony's lead when it came to console pricing, matching the gaming giant price cut for price cut.

But not this time. Microsoft has yet to issue any word on a price cut for the current Xbox, and judging by the company's focus on the Xbox 360, no price cuts seem likely to happen in the short term. We asked Microsoft if it had plans to reduce the price of the original Xbox, and a representative told us that "we have no announcements to make on pricing. Our Xbox consoles continue to sell well."

When we asked for sales figures to demonstrate that the Xbox still does "sell well," we were told that the company was currently in a "quiet period" and that Microsoft would be "providing more detail on the Xbox business" later this month, as part of the Microsoft Earnings release.

More details soon.