Microsoft Corporation (NASDAQ:MSFT) has confirmed that they are cutting the prices of the Xbox 360 by about $100 as revealed by the leaked Target circulation ad. This matches the price drop that the Sony PlayStation 3 made last week.
Both the Xbox 360 Elite and the PlayStation 3 costs $299. The price drops apply worldwide, but varies based on currencies. Microsoft currently has 3 versions of the Xbox 360 at three different price points. The Xbox 360 Pro will eventually be phased out but will cost $249 while supply is available.
The Xbox Arcade, which does not have a hard drive currently costs $199. The price cuts will be effective by this Friday. The Nintendo Wii has not announced any price cuts and will stick around the price point of $250.
Over 31.4 million Xbox 360 consoles have been sold thus far. The PlayStation 3 has sold about 23.7 million units, and the Nintendo Wii sold about 52.6 million.