Game console leaders clash over prices, developers By CNET News.com Staff May 24, 2002, 4:35 p.m. PT Price wars are the rage at E3, an industry conference that focuses on all things gaming. Microsoft wants Xbox to lead online gaming; will the company be as successful as Sony in that quest? Online gaming via consoles may well revolutionize the game industry and the Internet--just don't hold your breath. Spandex-busting booth babes show off games that seem to have come off an assembly line with about five components. But some gear manages to stand out for reasons weird or wonderful. For the software publishing industry, video games are a numbers game. And for now, Microsoft is on the losing end. Game publishers say it's a simple matter of economics. As the Internet-gaming market seeks mainstream appeal, the creators of one of the most popular PC games ever propose a new, TV series-like model. The electronics giant kicks off the game industry's biggest trade show by touting its huge sales lead over rivals with its PlayStation 2. Read the latest reviews, check prices and more on these CNET sites. Reviews Microsoft Xbox Sony PlayStation 2 Nintendo GameCube Prices Microsoft Xbox Sony PlayStation 2 Nintendo GameCube Complete coverage from GameSpot E3 conference sneak peeks GameSpot's video game list Microsoft will spend $2 billion over five years to make its machine the leading video game console and to build the network for online Xbox gaming. U.S. Army invades game business The U.S. Army announces that it is developing two role-playing and strategy PC games that it will distribute in a free package to serve as recruiting tools. Evolution Robotics says it can transform an average laptop PC into an intelligent robot with a kit that includes a rolling platform and a Webcam for capturing visual data. The widely expected markdown will take effect next month and will make Nintendo's game console the cheapest on the Japanese market. Electronic Arts says the popular PC game, which lets you create and control a virtual family, will make its game console debut this fall on PlayStation 2. The video game division of George Lucas' multimedia empire says it will develop new online games for the two consoles. Sorry fans: No release date yet. Still have doubts that a game machine price war is under way? Nintendo makes the battle crystal clear by undercutting rivals Sony and Microsoft. While Microsoft didn't offer any information on upcoming products, the move is seen as a signal of Microsoft's growing interest in subscription-based online games, an emerging but profitable business segment. The electronics giant responds to growing price pressure in the video game industry, cutting the North American price of its PlayStation 2 game console by $100. The tech colossus fires the second shot in the video game industry's growing price war, following rival Sony's decision to make an identical cut in the price of its PlayStation. Sony, Microsoft and Nintendo will launch new campaigns in the game console wars at next week's Electronic Entertainment Expo. The main weapons: online gaming and price cuts. Sony takes PlayStation onlineKaz Hirai, president, Sony Will gamers be baited by Xbox Live?David Hufford, Xbox product manager, Microsoft Intel integrates USB with new chipsetBrian Fravel, marketing manager, Intel Intel plays to E3 crowdBrian Fravel, marketing manager, Intel Latest Headlines display on desktop Palm to cut handheld pricesHP board forms tech policy committeeAOL narrowly beats estimatesTech pros: Cyberbomb's ready to go offDow up 488 points as stocks surgeVerizon to FCC: We need protectionEDS blames WorldCom for earnings woesAvantGo narrows loss, to cut work forceDisplay company powers up prospectsTerra Lycos pares loss; revenue slidesAgere rings up loss amid telecoms woeGates: Snags slow .Net workDirect sales shut door on German retailerTwo-headed hard drive aims for securityInfineon cuts deals for wearable chipsYear-end surge to lift IT spendingAriba posts narrower lossFive arrests in Adelphia fraud caseHandspring to replace lights-out TreosWyly puts down his CA proxy dukesThis week's headlines