It seems that the console price wars have spilled over into Europe. This morning, the European arms of both Sony and Microsoft announced within minutes of each other that they would be dropping the prices of their respective consoles. The PlayStation 2's UK price dropped to 104.99 pounds ($190) as of today, while the Xbox will begin retailing for 149.99 euros and 99.99 pounds (approximately $180) as of August 27.

Since launching the Xbox, Microsoft has shipped 15.5 million units worldwide, and Sony touts more than 72 million PS2 owners. Both consoles have several highly anticipated games scheduled for release later this year, such as Grand Theft Auto: San Andreas for the PS2 and Halo 2 for the Xbox.

In absolute numbers, the European price cuts are close to the reductions seen in North America in late 2003, when both consoles dropped to a $179.99 price point. Microsoft and Sony followed those initial moves early this year, with the Xbox falling to $149 in March and the PS2 following suit in May. Both companies are undoubtedly hoping that they experience the dramatic sales increases Microsoft saw after its price cut earlier this year.