Microsoft confirmed on Monday what has been widely speculated for the past couple of months. They will indeed cut the price of the Xbox by $30 to $149 on March 30th.

Along with this, various Xbox software titles have been added to the new Platinum Family Hits label or otherwise reduced in price. Project Gotham Racing 2, Crimson Skies, and Counter-Strike will be reduced down to $29.99. Xbox Music Mixer, Voodoo Vince, and Grabbed by the Ghoulies will be reduced to $19.99. The first batch of Platinum Family Hits games include Harry Potter and the Chamber of Secrets and Finding Nemo, which will also retail for $19.99.

It will be interesting to see whether this will provoke a response from Sony, the current industry leader, into similarly reducing the price of the PS2.