San Francisco, Aug 28: Just days after rival Sony Corp slashed the PlayStation 3 price from 399 dollars to 299 dollars, Microsoft decided to step in to the price war by cutting the price of its high-end Xbox 360 game console by 100 dollars too.
Now, Microsoft's Xbox 360 Elite comes at 299.99 dollars in the United States, shedding 25 per cent of its rate. This is effective from Friday, Aug 28.
This move by Microsoft may put pressure on Nintendo Co Ltd to lower the price the Wii console. However, the company is standing firm at the current 249 dollars' price.
This price war will not only affect the game console market, say analysts. Since the consoles are increasingly being seen as the centerpieces of home entertainment, their sales can also increase the sales of software, accessories and other media.