As per an official announcement from Microsoft, there will be a $100 reduction in the price of its high-end Xbox 360 Elite console with effect from Friday, August 28, - thereby implying that the particular model will now cost $$299.99 instead of the earlier price of $399.99.

The Microsoft announcement also said that the price of its entry-level Xbox Arcade console will remain at the current $199.99; while the mid-range console, Pro, which will eventually be phased out, will now cost $249.99, rather than $299.99, till supplies last.

Though the Microsoft price-cut move is widely seen as the software maker's response to the recent Sony move of slashing the cost of PlayStation 3 to $299, Microsoft spokesman David Dennis clarified that the company had been considering the price-cut from quite some time.

Noting that the announced price reduction would lure new buyers, and simplify its product mix for manufacturers, retailers and customers, Dennis said: "It really makes the decision for consumers a lot easier. They're either price conscious and they gravitate toward the Arcade or they the want the full Xbox 360 experience."

While Xbox is the second-ranking gaming console in the US, after Nintendo's $249-priced Wii, the sales of Xbox have been comparatively more robust in 2009 - with a 17 percent rise in the US sales, Xbox has been the only console in positive territory!