According to retail sources speaking to Spong.com Sony is planning to cut the price of the skinny PlayStation 2 to 60 Euro, in an effort to undermine the launch of the Microsoft Xbox 360.

The price reduction will probably be worldwide, with the console priced at $100 in the US Nintendo may also cut the price cut of the GameCube in an effort to take some buzz of the Microsoft Xbox 360

"You can expect significant reductions in the price of everything this Christmas, but most noticeable will be the PlayStation 2," our well-placed source told SPOnG. "We've been briefed to expect a price as low as 60 Euro beginning at the start of December. Sony's probably looking at a global price cut - around $100 in the States and a serious Platinum range announcement too."