The first shots in the Christmas 2004 console war were fired today as both Microsoft and Sony announced price cuts. The PlayStation 2 will now retail for the rather odd price of £104.99 (was £149.99), with the Xbox a slightly cheaper £99.99 (was £129.99) Expect an upsurge in sales in the coming weeks, especially as the Q4 run of decent games starts to kick in. However, it's worth noting that the Xbox is a big money pit for Microsoft, with an operating loss of $209 million in the first three months of 2004.