Microsoft confirms Xbox 360 price cut

Microsoft Corp. confirmed on Monday that it will cut the price of its video game and entertainment system Xbox 360 by US$50 in the United States, turning the months long speculation of possible price cut into reality.

The world’s largest software company announced the cut down in price in its home market. Starting August 8, the price of the 20-gigabyte Xbox 360 system will fall from US$399 to US$349, Microsoft confirmed yesterday.

Besides shaving the price of its high-end version of gaming consoles, the Redmond, Washington-based software titan has also reduced the estimated retail price of its cheaper "core" package by US$20 to US$279 and its higher end "Elite" package by US$30 to US$449.

Until now the basic version of Xbox 360 (without a hard drive or wireless controllers) was sold with a price tag of US$299, while the high-end versions were retailed for $US399 (Xbox 360 Premium System with a 20GB hard drive, wireless controller and headset) and $US479 (Xbox 360 Elite System with a 120-gigabyte hard disk and HDMI connector) respectively.

Microsoft’s decision comes more than a week after it announced the price cut of Xbox 360 HD DVD Player. On July 26, the software giant said it will reduce the Xbox 360 peripheral 10%, starting August 1.

Launched in November 2006, the Xbox 360 HD DVD Player plugs into Xbox 360 and gives the ultimate home theater experience with more clarity and detail than broadcast, cable, or satellite HD. Microsoft has already started selling the player at reduced price of US$179, down US$20 from the original $199.

Microsoft’s price change also follows rival Sony’s decision to cut the price of its 60 GB PlayStation 3 game console by $100, or 17 percent, from US$599 in the United States.

Tokyo, Japan-based tech mammoth’s American unit, Sony Computer Entertainment America, Inc., or SCEA, early last month announced that its current 60GB PS3 model will be available in North America for a lower price of $499, below the original launch price by $100, with immediate effect.

On their recent price change, Aaron Greenberg, group product manager for the Xbox 360, said, “We have maintained launch price for 21 months. That’s the longest on record for any new console. Now we are cutting the price as we think about bringing in those who have an Xbox or PS 2.”

Xbox 360, the future-generation game and entertainment system from Microsoft, represents a dramatic leap forward in high-definition gaming and entertainment experiences. Xbox 360 has ignited a new era of digital entertainment that is always connected, always personalized and always in high definition.

The three biggies in gaming arena, Microsoft, Sony and Nintendo, are locked in a fierce battle for dominance in the $13 billion U.S. video game market, and for the moment, Kyoto, western Japan-based Nintendo is leading all the way with its Wii video games console, the least expensive of the so-called next-generation consoles that costs US$250.

Meanwhile, Microsoft also announced yesterday that the green and gold "Halo 3"-themed console, will hit the market on September 25 and would retail for US$400.