Microsoft Drops Price of Xbox 360

Microsoft is shaving $50 off the price of Xbox 360 video game consoles in the US, just a month after Sony dropped the price of its PlayStation3 by $100. Both have faced unusually strong competition from Nintendo’s hot Wii, Reuters reports, and want to boost preholiday sales. Premiering in November 2005, the 360 had stayed at the same price—$400—for 20 months, the longest for any console.

The Xbox business hasn't made money since its 2001 debut. An analyst said lowering the price points may not  make much difference in the market. "When it comes to consoles, it's not the price that sells the console, it's the games that sells the console, and from that perspective, Microsoft's in pretty good shape." (More Xbox 360 stories.)