Microsoft announced that it is slashing prices of its flagship gaming device, XBOX 360, in the US. This will take the price of the basic model down to $199, approximately $50 cheaper than Nintendo Wii. It said that prices for the other Xbox models will drop by $50.

The US cut follows a similar move in Japan. In late August Microsoft announced that Japanese prices of the Xbox 360 would fall in September. The cut meant an Xbox Arcade will cost 19,800 yen ($182), also cheaper than the Wii. Earlier this year, in March Microsoft cut European prices making the recommended price for the Arcade £159.99, lower than the European price for a Wii.