Xbox price cut to $499

AP

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Microsoft is slashing the price of the high-end Xbox 360 console by $100 in New Zealand, following Sony's price cut for the PlayStation 3 last week.

Now, the Xbox 360 Elite will cost $499. The price cuts are effective from September 22.

The PlayStation 3 now costs $630.

The price cuts in both cases are worldwide, though the exact amounts vary by region depending on currencies.

In the US both consoles sell for US$299 (NZ$445).

Microsoft, which has had three versions of its Xbox 360 available at three different prices, also was to announce Thursday it is phasing out the mid-range, Pro, version of the console. It will be available for $449, while supplies last.

The cheapest Xbox, the Arcade, which comes without a hard drive, will still cost $349.

Video game companies hope the price cuts will re-ignite sales in time for the holiday rush. For the bulk of this year, the industry has suffered from weak sales - hurt by the recession and lackluster game releases, which have kept consumers waiting to spend money on new titles.

The announcement from Microsoft leaves only Nintendo without a price cut for the fall, at least for now. The Wii costs $499 in New Zealand.

Redmond, Wash.-based Microsoft has sold more than 31.4 million of the Xbox 360 machines globally, compared with 23.7 million PS3 machines sold by Sony and 52.6 million Wiis.

- AP