Microsoft reduced prices on Xbox360 to make it more popular than Wii and Sony play station. Microsoft cut the price of the Xbox 360 Arcade version to US$199, the Xbox 360 console for US$299.99 and Xbox 360 Elite for US$399.99. Earlier, the company reduced prices on the same product in Japan. Microsoft source admitted that more than 75pc of all console sales happen after the price falls below the US$200 mark.

 

Don Mattrick, Senior VP, (Interactive Entertainment Business) Microsoft, said that the company is happy being the first next-generation console on the market to reach $199, a price that invites everyone to enjoy Xbox 360. He claimed that at US$199, Xbox 360 is the most affordable next-generation console on the market. The firm may reduce prices in Europe to give tough competition to Wii and PlayStation 3.

 

According to Mattrick Xbox 360 delivers amazing performance at an extraordinary value with the leading online service and best line-up of games, downloadable movies and TV shows available from a console. Understanding the reduction of prices he said that the majority of consumers make the decision to buy consoles once the price falls. He said that it is an important milestone for consumers and the industry.