Microsoft Corp. cut the price of the Xbox console to $179.99 in the United States, one day after chief rival Sony Corp. did the same with its PlayStation 2.

The price cut from $199 is effective immediately, and some retailers already are showing the new price on their Web sites.

Sony cut the PS2 price from $199 Tuesday to clear out inventory ahead of the launch of a redesigned PS2 with an online networking adapter. That package is expected to retail for $199.

Nintendo currently has no plans to match the cuts announced by Sony and Microsoft, a report said.