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Microsoft cuts US Xbox price to below Wii

Xbox 360 Arcade is cheapest console around

Microsoft yesterday announced $50 to $80 price cuts on all Xbox 360 models in the US.

Starting tomorrow, US consumers will be able to buy the Xbox 360 Arcade (without hard drive) for $199 (about £112), followed by the Xbox 360 Pro for $299 (£168), and Xbox 360 Elite for $399 (£225).

"We are thrilled to be the first next-generation console on the market to reach $199," said Xbox president Don Mattrick.

"The majority of consumers make the decision to buy consoles once the price falls to this mark, making this an important milestone for consumers and the industry."

As it currently stands, the Nintendo Wii retails for $250, making the Xbox 360 Arcade the most affordable console available. The PlayStation 3, by contrast, currently sells for $399 and $499 depending on the model.

The cuts are expected to boost Xbox sales as the US enters the all-important holiday season. It's not known whether UK price cuts will follow.

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