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Microsoft said yesterday it would slash the cost of its Xbox 360 console to compete in the video game price war. From the beginning of next month, the 360 will drop from its present price of £170 to £150- but only in Japan. The move comes as manufacturers prepare for a sales war leading up to Christmas. The boost for Japanese gamers comes just a week after Sony cut the price of its PlayStation 3 by £50 in the US to £246. It had already announced similar price cuts in Europe and Japan. Both Sony and Microsoft have taken a hit after the success of the Nintendo Wii, which sells for £180 in Britain. Nintendo said it had no plans to cut the price of its machine. Since the Wii went on sale late last year, nearly 9.3million units have been sold worldwide. Microsoft has no plans to cut the Xbox price in Britain, where the console sells for £250.

Microsoft said yesterday it would slash the cost of its Xbox 360 console to compete in the video game price war. From the beginning of next month, the 360 will drop from its present price of £170 to £150- but only in Japan. The move comes as manufacturers prepare for a sales war leading up to Christmas. The boost for Japanese gamers comes just a week after Sony cut the price of its PlayStation 3 by £50 in the US to £246. It had already announced similar price cuts in Europe and Japan. Both Sony and Microsoft have taken a hit after the success of the Nintendo Wii, which sells for £180 in Britain. Nintendo said it had no plans to cut the price of its machine. Since the Wii went on sale late last year, nearly 9.3million units have been sold worldwide. Microsoft has no plans to cut the Xbox price in Britain, where the console sells for £250.