Microsoft slashes Xbox 360 price

27 August 2009 12:05pm

Microsoft is slashing the US price of the high-end Xbox 360 console by $100, matching Sony's $100 price cut for the PlayStation 3.

Now, both the Xbox 360 Elite and the PS3 will cost $299. The price cuts in both cases are worldwide, though the exact amounts vary by region depending on currencies.

Microsoft, which has had three versions of its Xbox 360 available at three different prices, also was to announce it is phasing out the mid-range, Pro, version of the console. It will be available for $249 in the US, down from $299, while supplies last.

The cheapest Xbox, the Arcade, which comes without a hard drive, will still cost $199.

The price cuts are effective from Friday, said David Dennis, a spokesman for Microsoft.

Video game companies hope the price cuts will re-ignite sales in time for the holiday rush. For the bulk of this year, the industry has suffered from weak sales - hurt by the recession and lacklustre game release schedules, which have kept consumers waiting to spend money on new titles.

The announcement from Microsoft leaves only Nintendo without a price cut for the fall, at least for now. The Wii has cost $250 in the US since its launch nearly three years ago.

Redmond, Washington-based Microsoft has sold more than 31.4 million of the Xbox 360 machines globally, compared with 23.7 million PS3 machines sold by Sony Corporation and 52.6 million Wiis.

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