Microsoft cuts US Xbox 360 prices

The price plunges ever downward, but not in Australia.

Microsoft announced Wednesday that it will drop its Xbox 360 game console prices in the US. The pricing move will undercut its competitors, Nintendo's Wii and Sony's PS3.

Microsoft said it will cut the price of its low-end Xbox 360 Arcade, which lacks a hard drive, from $US279 to $US199.

The company will also lower prices on both of its mid-line and high-end Xbox 360 models by $US50. Its Xbox 360 Pro, which has a 60GB hard drive, will drop in price from $US349 to $US299, while its Xbox 360 Elite, with a 120GB hard drive, will drop in price from $US449 to $US399.

Nintendo's hot-selling Wii console retails for $US249 and Sony's entry-level PS3 model, which has an 80GB hard drive and a Blu-ray player, sells for $US399.

The move will make the entry level Xbox 360 the first of the current generation game consoles to sell for less than $US200.

The three major game console makers are squaring off for battle in the upcoming holiday buying season, so more competitive pricing moves in future weeks won't be too surprising.

However, there will be no follow on price drop locally. MS representatives on our shores have said that that since the price was already dropped a few months ago, they will not be following suit with this latest round. Sucks to be Australian.