Microsoft Slashes Xbox Price

NEW YORK (AP) -- Microsoft is cutting the price of the high-end Xbox 360 console by $100, matching Sony's PlayStation 3, which saw its price slashed by $100 last week.

Now, both the Xbox 360 Elite and the PS3 will cost $299. The price cuts in both cases are worldwide, though the exact amounts vary by region depending on currencies.

Redmond, Wash.-based Microsoft Corp., which has had three versions of its Xbox 360 available at three different prices, also is phasing out the mid-range, Pro, version of the console.

The cheapest Xbox, the Arcade, will still cost $199. Video game companies hope the price cuts will re-ignite sales in time for the holiday rush.

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