In a response to Sony's recent price reduction of its PlayStation2 video console and some of its PS2 game titles, both manufacturers of Xbox and GameCube have announced price reductions in some of their best selling video titles. Microsoft, the manufacturer of Xbox, announced a price reduction for titles that will retail in its new "Platinum Hits" title group. This group of titles will reportedly sell for $19.99 (each) US, compared to their normal retail price of $49.99 US for the best sellers, and $29-$39 US for other titles. A spokesperson for Microsoft indicated that Xbox games that will sell in the "Platinum Hits" category are games that have been on the market at least nine months and that have already sold between 350,000-500,000 units. Xbox's best selling title, "Halo," will not move to the "Platinum Hits" group for a while and will remain at full retail price. Xbox is currently the second best selling video game console in the United States with PlayStation2 reigning as number one.

Nintendo, the manufacturer of the GameCube video console, announced its own price war promotion by offering one free game title from a selected group of titles with the purchase of a GameCube console at a discounted price of $149.95 US. Nintendo also cut the price on its bundled GameCube console that includes an external memory card and "Super Mario Sunshine" title, to $159.95 US, which purchased separately would retail for approximately $215 US. GameCube is also cutting prices on titles that will retail in its new "Player's Choice" title program, a selected group of older, but popular titles that will retail for $29.95 (each) US, down from their original $49.95 retail price. Nintendo is currently in third place in the video game console market.