Microsoft Makes Xbox Cuts Official

Microsoft dropped the price of all three versions of the Xbox 360 Tuesday

August 2007 By Stephen Silver

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Affirming months of rumors, Microsoft on Tuesday announced an across-the-board price cut of its Xbox 360 gaming console, the Wall Street Journal reported.

Under the new pricing regime, the premium 360 will drop from $399 to $349, while the “core” version’s price will fall from $299 to $279. The “elite” console, meanwhile, will see its price fall from $479 to $449. The new prices are in line with a Circuit City flyer that circulated last week advertising the cuts in advance.

The reason for the cuts, a Microsoft executive told the Journal, was so that the company could expand the console’s core audience. Both the 360 and Sony’s Playstation 3 have begun to fall behind in recent months to Nintendo’s Wii, which has scored largely by attracting casual gamers.