Report: Microsoft To Slash Xbox 360 Prices In U.S.

Originally reported by BusinessWeek, Microsoft will cut the retail price of its Xbox 360 Arcade model from $279.99 to $199.99, a move it expects will spark a fresh wave of adoption amongst would-be gamers.

Microsoft is also cutting the price of its midrange Xbox 360 Premium console from $349.99 to $299.99, and reducing its high end Xbox 360 Elite model from $449.99 to $399.99.

"We are thrilled to be the first next-generation console on the market to reach $199, a price that invites everyone to enjoy Xbox 360," said Don Mattrick, senior vice president of the Interactive Entertainment Business at Microsoft, in a statement.

On Monday, reports surfaced that Microsoft's Japan business unit is planning to cut Xbox prices in that market by up to 30 percent.

Last month at the E3 Media and Business Summit in Los Angeles, Microsoft and Netflix announced plans to let Xbox 360 users to stream movies and TV shows from Netflix's 12,000-title video archive, as part of a service that's due to launch later this year.