With Rock Band 2 hitting store shelves, developer Harmonix and owner MTV Games have dropped the price of the Special Edition bundle for the original Rock Band, which pack a guitar, microphone and drum kit, along with the multi-instrument music game.

As of today, prices for the Rock Band Special Edition in the US are as follows:

• PlayStation 2 / Wii: Now $100, Was $160/$170
• Xbox 360 / PlayStation 3: Now $140, Was $170

All Rock Band Special Editions come with a wired drum kit. While the PS2, Wii and PS3 bundles come with a wireless guitar, the Xbox 360 package includes a wired model.

Instruments from the original Rock Band are compatible with Rock Band 2 for their respective platforms, with owners of the PS3 and Xbox 360 original able to export 55 of the 58 songs from the first Rock Band into the sequel for $5.

The PlayStation 2, PlayStation 3 and Xbox 360 versions of Rock Band hit last fall, with the Wii version arriving earlier this summer. The PlayStation 3 and Xbox 360 versions of Rock Band 2 are already at retailers, with the PS2 and Wii editions due this year.

Rock Band 2 Special Edition bundles sell for $190, packing updated wireless drums and guitars, a wired microphone and, of course, the sequel itself.

Following the recent Xbox 360 price cuts in Europe and North America, Microsoft UK head of gaming and entertainment Stephen McGill has told VideoGamer that "I'm not dropping the price for many many years in the future, I would suspect."

Back in September, Microsoft slashed the prices of its three Xbox 360 models, dropping their prices from $50-80. The cheapest Xbox 360 model, the hard drive-less Arcade unit, now sells for $199--$50 lower than Nintendo's rival Wii console. The Xbox 360 Pro, often considered the standard Xbox 360 model, packs a 60GB hard drive for $299.

"We've obviously just reduced the price and that's because we can pass the costs reductions we have straight on to consumers," McGill explained. "I'm not going to speculate where [the price] might go in five or ten years time."

"It's great value," he added. "And I think the value not only comes from the price of the console but the content."

While Sony has stated that it has no plans to cut the price of the PlayStation 3 this year, EEDAR analyst Jesse Divnich now says that letting its lower-priced competitors stay unchallenged could be a mistake for the Japanese console manufacturer.

"We still urge Sony to consider a possible hardware price cut this holiday season," said Divinich according to Gamasutra. "If September hardware sales fall below our estimate (under 200,000 units), it could be an indication that the Xbox 360 price cut played a bigger role on hindering PS3 sales than what we originally expected."

With Sony banking on its lineup of exclusives such as Resistance 2 and LittleBigPlanet to entice new customers, Divinich points to an even stronger Microsoft software lineup and the prohibitive cost of a PlayStation 3 as reasons why the company may be making a mistake.

"The $399 price point is simply too steep to entice the casual and mainstream markets, regardless of how great Resistance 2 and LittleBigPlanet may be," he added, after noting that the Xbox 360 exclusive Gears of War 2 will likely be this holiday's top seller.

At $399, the cheapest version of the PlayStation 3 is the recently-upgraded 80GB SKU, with a $499 160GB model soon replacing the existing $499 80GB unit. Microsoft recently slashed prices on its Xbox 360 consoles, with the cheapest unit, the hard drive-less Arcade model, now priced at $199. Meanwhile, the 60GB Pro model now sells for an MSRP of $299. Post-price cut sales data has not yet been released for comparison.

Update: Sony has clarified that the price cut stems from Blockbluster itself, not Sony.

Original Story: Sony will be dropping the price of the discontinued 40GB PlayStation 3 hardware to $360 this weekend--a $40 cut--retailer Blockbluster has confirmed with Kotaku.

Back at E3, Sony announced that it would soon replace the formerly $400 40GB PS3 with a model that packed an 80GB HDD and the same functionality for the same price. Compared to the $500 model, the $400 PS3 only has two USB ports and is not backwards compatible with PlayStation 2 games.

As Sony has repeatedly vowed that it does not plan to drop the PS3's price this year, it is presumed that this cut is merely an effort to clear shelf space before the new model hits.

The company has also announced plans to replace the existing $500 80GB PlayStation 3 with a $500 160GB version in November, which will likely prompt another round of temporary price reductions as retailers clear out the previous model.

Along with larger hard drives, the revised PlayStation 3 SKUs will pack the updated DualShock 3 controllers instead of the vibration-less Sixaxis controllers.

Following the recent Xbox 360 price cut in North America, Microsoft today announced European price cuts for their console as well.

The Arcade version will go from €199.99 to €179.99 (£129.00), the Pro from €269.99 to €239.99 (£169.99) while the Elite will now sell for €299.99 (£229.99), down from €369.99.

The cuts become effective this Friday.

With the price cut, both the Arcade and Pro SKUs will retail below the Nintendo Wii, which currently sells for 249.99 euros (£179.99).

The price cut tag gets a warm welcome today as Larry "Major Nelson" Hryb has finally confirmed what has circulated the retail world for several weeks: the Xbox 360 will soon be cheaper.

In line with previous predictions, the new prices are as follows:

• Xbox 360 Arcade (No Hard Drive): $199, down from $279
• Xbox 360 Pro (60GB HDD): $299, down from $350
• Xbox 360 Elite (120GB HDD): $399, down from $449

The price cuts are effective Friday, September 5. Meanwhile, eyes are on Sony to see if it will respond in kind. The rival console maker has denied that it will lower prices on its PlayStation 3 system this year, but hardware manufacturers often slash prices in response to competitors' cuts.

While discussing its record-breaking quarter, retailer GameStop revealed that it expects both the PlayStation 3 and Xbox 360 to undergo $50 price cuts by the end of 2008.

A $50 price cut for the Xbox 360 Pro and Elite models has been practically confirmed, with the drop expected to take effect on or around September 7. Whereas the two higher-end Xbox 360 models will drop by $50, the hard drive-less Arcade unit is said to see a reduction of $70, making it $199.

Sony previously stated that it would not drop the price of its various PlayStation 3 units this year. However, the company is introducing higher-capacity PS3 models--the $399 80GB and the $499 160GB bundle--that maintain the existing prices of PS3 hardware.

Rumors of a $50-80 slash on several Xbox 360 SKUs are appearing to prove true, as a new RadioShack flyer (pictured left) seems to confirm the earlier reports.

Joystiq notes that several contacts in the retail world have also indicated the reductions are a done deal.

The price cuts, apparently set to take place during the week of September 7, are as follows:

• Xbox 360 Arcade (No Hard Drive): $199, down from $279
• Xbox 360 Pro (60GB HDD): $299, down from $350
• Xbox 360 Elite (120GB HDD): $399, down from $449

Following up on rumors of Xbox 360 price cuts in September, VGChartz claims to have obtained evidence of the drop in the form of an inventory listing from an unknown retailer.

According to the picture, the $279 Xbox 360 Arcade unit will drop to $199 on September 7.

The price point coincides with the rumors of September cuts that popped up last week:

• Xbox 360 Arcade (No Hard Drive): $199, down from $279
• Xbox 360 Pro (60GB HDD): $299, down from $350
• Xbox 360 Elite (120GB HDD): $399, down from $449

If legitimate, and going by the open secret that was the last Xbox 360 price cut, expect confirmation via candid photos of advance retailer circulars in the coming weeks.

Microsoft is preparing to slash prices on all existing models of the Xbox 360 hardware, going by the latest rumor out of Ars Technica.

The site claims the information came from the same source that provided early details on last month's pseudo price cut, which saw Microsoft debut an Xbox 360 model with a 60GB HDD for $380, while the remaining supply of 20GB units were reduced to $300.

The rumored priced cuts, along with the curren hardware prices, follow:

• Xbox 360 Arcade (No Hard Drive): $199, down from $279
• Xbox 360 Pro (60GB HDD): $299, down from $350
• Xbox 360 Elite (120GB HDD): $399, down from $449

Target today confirmed the long-rumored price cut of $50 for the Xbox 360 Pro bundle by way of a promotional press release.

The cut lowers the price of the 20GB Xbox 360, coupled with a wireless controller, to $299.99. The company is offering a $25 gift card on top of the cut for an in-store promotion.

There is no word yet on whether or not the sale is indicative of a forthcoming 60GB Xbox 360 console. Stay tuned for news out of Microsoft's E3 press conference, scheduled for 10:30 AM PST this coming Monday.

Sony CFO Nobuyuki Oneda revealed that the company currently has no plans to reduce the price of its PlayStation 3 console, PhysOrg reports.

"This year, our strategy is not to sell more quantity for PS3 but to concentrate on profitability," Oneda told investors at the Nomura Asia Equity forum in Singapore. "Our plan is not to reduce the price."

Oneda's remarks follow recent reports that Sony lost $3.31B over 2007 and 2008 due to an imbalance between the production cost of the PlayStation 3 and its retail price point.

Competitor Microsoft's Xbox 360 is expected to enact a $50 price reduction for the Premium version of the console next week, setting the retail price point at $299 down from $349.

The PlayStation 3 is currently available in two hardware configurations at retail: a 40GB versio priced at $399, and an 80GB version running $499.

Lending further credence to last week's leak of a possible $50 price cut for the Xbox 360 Premium, scans of an upcoming ad flier from electronics retailer Radio Shack have also listed the console at a $299.99 price point.

According to Joystiq, the scans were sent by a Radio Shack employee who claimed that the new price is to take effect on July 13. The Premium version of the Xbox 360, which includes a wireless controller and 20GB hard drive, presently retails for $349.99.

Moreover, the Hollywood Reporter claims to have confirmed the price cut with industry sources. The price reduction is said to be planned for an official announcement before next month's E3 Media and Business Summit, which kicks off on July 15... Read more

Update: A full-page shot of the K-Mart flier (pictured left) apparently revealing a $50 price cut for the Xbox 360 Premium console has appeared on Joystiq, sent to the website by a second, unspecified source.

Contrary to information reported yesterday on High-Def Digest's forums, Joystiq's source claims that the flier will be distributed on Sunday, July 13, the week of the E3 Media and Business Summit.

Original Story: The Premium version of Microsoft's Xbox 360 console may see a price cut from its current $349.99 retail price to $299.99 next month, according to scans of an alleged flier from retailer K-Mart.

Arising on the High-Def Digest's forums, the listing appears in a K-Mart sales advertisement aimed for distribution on July 6, the week before the E3 ... Read more

GameStop COO Dan DeMatteo anticipates shortages of the Nintendo Wii to continue for at least six months, MCV reports.

Speaking on an investor's conference call about inventory expectations in 2008, DeMatteo stated that he expects the retailer's supplies of the Nintendo Wii to fall short of demand for "the next two quarters at the least.

"Supplies have continually improved," DeMatteo added. "But we still don't know when supply will meet demand for the Nintendo Wii as they continue to sell out as soon as they hit the shelves."

Keeping up with outrageous demand for the Wii has proven difficult for retailers. Across the year of 2007, there were only three instances when the Wii and the Nintendo DS were not the month's top two best-selling pieces of hardware in North America.

GameStop CFO David Carlson added that the company also expects substantial price cuts for consoles in the coming year. "We've assumed a couple [of price cuts]," Carlson said. "The Xbox [360] and the PS3 have a $50 price cut sometime in the year. We have no knowledge or verification of those, but that's just the assumption we have used."

Confirming recent rumors of a price drop, Microsoft has announced that it will be lowering the price of all European Xbox 360 hardware by 80 euros/£40-50.

Effective this Friday, March 14, the cut drops the estimated retail price of the hard disc drive-lacking Arcade unit to 199.99 euros/£159.99, with the 20GB HDD-equipped Xbox 360 priced at 269.99 euros/£199.99. The Elite Xbox 360, which includes a 120GB HDD, will sell at 369.99 euros/£259.99.

Under the new prices, the Arcade unit is cheaper than a Nintendo Wii, which carries an ERP of 249.99 euros/£179.99.

Though the slash brings the prices of European Xbox 360 hardware much closer to those of the United States, the difference between the two, in the words of Shacknews editor Maarten Goldstein, "is still grossly unfair with the current euro/USD rate."

Going by today's euro/USD exchange rate, the new price of the Arcade unit, which has an MSRP of $279.99 in the United States, translates to $307.11. Compared to US MSRP of $349.99, the price of a European Premium unit will be $414.58, with the $449.99 Elite going for $568.14 in Euroland.

MCV is reporting that an unspecified source has confirmed a price cut for Microsoft's Xbox 360 hardware in the UK later this month.

MCV's source could only specify the cut for the Arcade version of the hardware, which will reduce the hardware's current cost of £199 to around £170, to make the system more competitive with—and possibly cheaper than—Nintendo's Wii console.

By way of corroboration, TechRadar reported a similar story, claiming that numerous retailers have indicated a price cut of 50 euros off every hardware version of the Xbox 360 across Europe. Sources say that the cut is scheduled for enactment on March 14.

The rumors follow an Xbox 360 price cut in Canada late last month, which saw prices for the Premium and Elite editions of the console CAD$50 cheaper, and the Arcade version reduced by CAD$20.

Microsoft has announced more details of the upcoming Xbox 360 fall update, the free download that will add new functionality and features to the system when it arrives next Tuesday, December 4.

Along with the Xbox Originals program and increased social networking, the company promises "enhanced video codec support" for MPEG-4 Part 2. "Our users should find that most of their DivX and Xvid files will work because they're under that umbrella," Microsoft's Aaron Greenberg told Joystiq.

The company has provided a table specifying video formats supported by the Xbox 360. More technical details on video playback are available official blog of the Xbox development team, which also supplies complete details of the forthcoming update. It had been widely rumored that support for the DivX codec would be added to the system, especially since that functionality was recently confirmed for the PlayStation 3.

Another change is that Microsoft will permanently lower the price of several Xbox Live Arcade titles as part of its new Arcade Hits initiative. Included ... Read more

An FCC filing uncovered by DailyTech may lend credence to the non-stop rumors of a $399 PlayStation 3.

Listed as model number CECHG01, the FCC-tested hardware revision features standard PlayStation 3 staples, including Bluetooth and WiFi. Interestingly, the FCC only mentions two USB ports--it's not known if the FCC only tested two USB ports or if the new hardware cuts the PlayStation 3's existing USB ports by half.

Earlier in the month, Sony raised $2.9 billion by selling off a percentage of its insurance unit--a move some analysts interpreted as preparation for an impending PlayStation 3 price cut. Many in the industry feel that Sony needs to once again reduce the hardware's price in order to compete with Nintendo and Microsoft's offering of cheaper units and more games.

Unfortunately, the FCC neglects to mention the size of the hard ... Read more

Wedbush Morgan Securities analyst Edward Woo told Bloomberg Thursday he expects to see another PlayStation 3 price drop after the 60GB model has been phased out.

Bloomberg spoke with Woo after confirming with Sony that the 60GB PS3 SKU would no longer be sold in the U.S. after the current inventory runs out. This makes manifest the remarks of SCEE president David Reeves shortly after the U.S. PS3 price rearrangement.

Sony would not comment on the price drop, but told Bloomberg that supply of the 60GB PS3 SKUs would probably last through October.

A price cut after the 60GB phase-out would seem likely, otherwise Sony's only price-point would be at $599. Though like the last "price cut" that finalized the phase-out of the 20GB model, the move isn't likely to bring the base price of any SKU below $499.

The PS3's first price drops took place at the beginning of the month, with the 60GB SKU dropping to $499, and a new 80GB SKU with a copy of Motorstorm totaling $599.