Microsoft Preps to Drop the Price of Xbox 360 to $199
Microsoft Xbox 360 Arcade to Cost $199 in September

In a bid to boost sales of its Xbox 360 game console, Microsoft Corp. reportedly plans to drop the price of the entry-level version of the system to $199, starting next month. The price-cut will help to sell considerably more Xbox 360 hardware on the domestic market. However, Microsoft still needs additional software to improve popularity of its console both in Europe and the U.S.

According to news-stories by Ars Technica and VGChartz web-sites, starting from the 7th of September, 2008, Microsoft will sell Xbox 360 Arcade for $199, Xbox 360 Pro for $299 and Xbox 360 Elite for $399. The price-cut is set to coincide with the release of Square Enix's Infinite Undiscovery and 2 weeks before Harmonix/EA's Rock Band 2, which are titles exclusively developed for the Xbox 360 platform.

Sales of Microsoft Xbox 360 have been slowing down for some time now, partly because of the success of Nintendo Wii, partly because the company has to offer new games so that to attract attention of various gamers. The price-cut along with the launch of two potentially popular titles may skyrocket popularity of the game console. Furthermore, in case sales of the X360 really increase considerably, it may catalyze Nintendo, which sells its popular Wii for $249, to also reduce the pricing.

Since the Xbox 360 has been on the market for three years now, the cost of manufacturing of the console has come down substantially and Microsoft may cut the price rather significantly without risking to lose a lot of money on the move.

Earlier this year the world's largest designer of software already slashed pricing of Xbox 360 in various regions, however, given the weak dollar, the console still has the lowest price in the USA and Japan.

Microsoft did not comment on the news-story.

Source: x-BitLabs