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Yesterday, Microsoft surprised the games industry with a significant price cut in the European territories. Our own UK-based writer, Jem Alexander, noted that the price drop was “tempting.” (However, he still hasn’t given in to buying a 360!)

Strategy Analysts’ principal analyst, David Mercer, commented on the situation. He believes that this will force Sony to play a price cut of its own in the territory: “Sony will be nervous that the PS3’s recent sales surge may fizzle out now that the premium Xbox 360 undercuts the PS3 by

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