Console Wars Begin As Nintendo & Microsoft Cut Prices

Nintendo anounced back in March that it would be increasing the price of its popular gaming console, the Nintendo Wii, up to £200 but this never really materialised as prices tend to stick around the suggested retail price of £179.99.

However, after yesterday's launch of the new PS3 slim coupled with the fact that the console can be preordered for as little as £245, there is a hint that a price war is about to start while the threat of any price increase has evaporated.

Toyrus for example sells the Nintendo Wii Sports pack for as little as £159.97 including free standard delivery, a full £20 under the SRP. Others like John Lewis and Tesco have thrown in additional games rather than just cutting down prices.

As for Microsoft, it has already signalled the death of the Xbox 360 Premium version and promised to increase the price of the less appealing Arcade

It is also set to reduce the selling price of the more expensive XBox 360 Elite which currently comes with a 120GB hard disk and can be purchased for a mere £220; this puts it within £25 from the technically superior and Blu-ray capable PS3 Slim.

Nintendo is the one which can bring in even more significant savings not only because the sheer amount of gaming consoles sold means that the company can negotiate better deals.

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There's also the fact that the more expensive components in the Wii can now be made for much less using more advanced manufacturing processes. The PowerPC-based "Broadway" processor uses a 90 nm SOI CMOS process and could potentially use a 32nm process.

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