Microsoft on Wednesday made a move into the uncharted sub-$200 gaming console territory, slashing its lowest-priced model to $199 just ahead of the busy holiday sales quarter.
"We are thrilled to be the first next-generation console on the market to reach $199, a price that invites everyone to enjoy Xbox 360," said Don Mattrick, senior vice president of the Interactive Entertainment Business at Microsoft, in a company statement.
The software behemoth’s move to cut prices on its Xbox 360 consoles comes amid advances from Nintendo’s popular Wii and Sony’s PlayStation 3. Nintendo’s Wii sells for $249.
Microsoft’s price cuts bring Xbox Arcade to $199, Xbox 360 to $299, and Xbox 360 Elite to $399, starting September 5.
Researcher NPD reported July console sales of 555,000 for Nintendo’s Wii, 225,000 for Sony’s PlayStation 3, and 205,000 for Microsoft’s Xbox 360.
On Friday, Nintendo boosted its first-half and full-year sales forecasts, saying it expects a 26 percent increase in net income for the full year on Wii sales, among other areas.