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Yahoo! My Yahoo! Mail Yahoo! Search Search: Sign InNew User? Sign Up News Home - Help Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Search Search: Microsoft cuts Xbox price by 25 percent Reuters - Friday, August 28 By Gabriel Madway and Franklin Paul ADVERTISEMENT SAN FRANCISCO/NEW YORK - Microsoft Corp plans to slash the price of its high-end Xbox 360 video game console by $100, or 25 percent, stepping up the price war in the video game console market. Effective Friday, Microsoft will drop the price of the Xbox 360 Elite to $299.99 in the United States, just days after Sony Corp cut the rival PlayStation 3 to $299 from $399. Analysts have said the cuts will pressure Nintendo Co Ltd to lower the price of its best-selling Wii console, which retails for $249, but for now the company is standing firm. "We don't have such a plan," Nintendo spokesman Yasuhiro Minagawa said when asked about a price cut. Among this generation of game consoles, the Xbox is No. 2 in the United States behind the Wii. But U.S. sales of the Xbox are up 17 percent this year, the only console to show growth. The price on the entry-level Xbox Arcade model will stay at $199.99, and Microsoft will phase out its mid-range Xbox Pro model, leaving it with two models. The Pro will sell for $249.99 until supplies run out. Since PS3, Xbox and Wii are increasingly centerpieces of home entertainment, their sales can spur purchases of software, accessories and other media, and boost traffic at retailers like Wal-Mart Stores and GameStop. And while the unit that runs Xbox is a small part of Microsoft's overall sales -- at about 11 percent -- it is the company's biggest weapon in the battle to control entertainment in the living room. Microsoft spokesman David Dennis said the price cut was in the works for some time and was not a response to Sony's cut. Rather, he said, the price reduction will attract new buyers and help simplify Microsoft's product mix for manufacturers and retailers as well as customers. "It really makes the decision for consumers a lot easier," he said. "They're either price conscious and they gravitate toward the Arcade, or they want the full Xbox 360 experience." In Europe, the Elite price will shrink by 50 euros in Britain. Chris Lewis, head of Xbox Europe, said the cut would help Microsoft match or beat its 2008 performance, when it increased unit sales of Xboxes more than 80 percent in Europe. Beyond console sales, the cuts by Microsoft and Sony should provide a lift to a broader gaming industry has been stuck in a slump brought on by a lack of big-name releases and a recession that has pinched consumer spending. Indeed, game publishers like Activision Blizzard have clamored for price cuts, which often boost sales of software. "Software makers should be quite happy about it," KBC Securities analyst Hiroshi Kamide said. "The industry should stage a bit of a recovery in the second half of this year." Microsoft shares rose 2 cents to $24.57. Email Story IM Story Printable View Blog This Sign in to recommend this article » 0 users recommend Related Articles: Personal Technology Microsoft cuts Xbox price by 25 percentReuters - Friday, August 28 Sharp eyes niche between netbooks, phonesReuters - Friday, August 28 Nokia establishes unit to tie phones, servicesReuters - Friday, August 28 Nokia plans to launch mobile 'banking'AFP - Thursday, August 27 Related Articles: Technology French official to talk iPhone troubles with AppleReuters - 2 hours 43 minutes ago Regulators open inquiry into wireless industryReuters - Friday, August 28 Facebook tightens safeguards after Canada talksReuters - Friday, August 28 Facebook to improve users' privacyAFP - Friday, August 28 Time Warner Cable to test TV on the Internet: reportReuters - Friday, August 28 Enlarge Photo Guests play the Xbox 360 "Halo 3" Multiplayer Beta video game during a preview party at Quixote Studios in Los Angeles May 15, 2007. REUTERS/Mario Anzuoni Related Photos Slideshow Full Photo Coverage: Personal Technology Related Full Coverage Personal Technology Mobile phones & personal gadgets All Full Coverage Most Popular – Technology Viewed Profile of swine flu begins to emerge: study Microsoft apologizes for photo gaffe Ciudad Juarez, deadliest city in the world: watchdog Singer Chris Brown sentenced for Rihanna assault Jackson killed by drugs cocktail: court View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Copyright © 2009 Yahoo! Southeast Asia Pte Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Privacy Policy - Terms of Service - Community - Intellectual Property Rights Policy - Help

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