MICROSOFT ANNOUNCED Wednesday that it will drop its Xbox360 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 Xbox360 Arcade, which lacks a hard drive, from $279 to $199.

The company will also lower prices on both of its mid-line and high-end Xbox360 models by $50. Its Xbox360 Pro, which has a 60GB hard drive, will drop in price from $349 to $299, while its Xbox360 Elite, with a 120GB hard drive, will drop in price from $449 to $399.

Nintendo's hot-selling Wii console retails for $249 and Sony's entry-level PS3 model, which has an 80GB hard drive and a Blu-ray player, sells for $399.

The move will make the Vole's entry level Xbox360 the first of the current generation game consoles to sell for less than $200.

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.

Microsoft's lower Xbox360 prices will be effective tomorrow, September 5th. µ

L'Inq
Reuters