Both Sony and Microsoft have announced the European price drop of their consoles at the Leipzig Games Convention.It is thought that Microsoft got wind of Sony’s intended price drop and preempted it by announcing their own reduction. The exact timings were 3pm CET for Microsoft and 4:30 SET for Sony.Sony new pricing for the PS2 will be £104.99 with immediate effect. The Xbox will drop to £99.99, just below the physiological £100 barrier, but will take effect on the 27th August.Sounds like Microsoft had made a decision to drop the price, Sony then dropped theirs and Microsoft felt they had to try and trump it. The end results will be close to zero Xboxes being sold between now and 27th August.Sales surged in the US when US retail prices were dropped in June; a similar effect is expected here.