The top end Microsoft Xbox 360 with a 20GB hard drive has been cut by 50 to retail at 359.99, while the entry-level Xbox 360 Core will sell for 279.99, a reduction of 20. Microsoft's new Elite version, which comes with a 120GB memory capacity and connections for high definition (HD) TVs, will sell for 459.99.

This price cut will put increased pressure on Sony which charges a walletbusting 629.99 for its PlayStation3. In an interview with the Financial Times last month, Sony chief executive Howard Stringer said he was considering a price cut for the console. At the moment, Irish gamers pay 30 more than their American counterparts.

Sony's price point attracted considerable negative analysis when it launched in Ireland in March. The Japanese games giant defends its high price on the grounds that its PS3 doubles as a Blu-ray DVD player. Sony has also unveiled a digital personal video recorder (PVR) service that records and saves television shows.

Ireland is an important indicator market for Sony, as it has the highest PlayStaion2 penetration rate in the world. The three main console makers, Sony, Microsoft and Nintendo, do not break down sales figures for Ireland, although Microsoft has claimed a 45% market share on somewhat opaque figures.

Extrapolation of the latest weekly Irish software charts by Cian Ginty of Irish games blog GamesToaster. com shows most games are being sold for Sony's PS2, followed by the PlayStationPortable, the Xbox 360 and the PlayStation3.

"People are still happy buying games for their old consoles and Sony is really good at supporting the old console, " he said.

These figures are based on multi-format games, thus Nintendo's often exclusive games don't rank.

In global terms, Nintendo Wii sales surpassed Xbox 360 last week, according to VGchartz. com. Sample data from international retailers indicate Nintendo has sold 10.57 million since its launch in December 2006, compared to 10.51 million for Microsoft since November 2005. Sony has sold 4.32 million PS3s.

Nintendo's DS system is also leading the handheld market and this is the first time one firm has led both segments since Nintendo's SuperNES and Gameboy led world sales in 1994.

This effective reversal in the global console rankings is expected to provide food for thought for third-party game publishers, with so much effort put into the high-tech 'seventh-generation' Sony and Microsoft consoles when consumers are increasingly opting for the cheaper and lower-tech Wii.