Microsoft Corp plans to slash the price of its high-end Xbox 360 video game console by $100, or 25 percent, stepping up the price war in the video game console market.

Effective Friday, Microsoft will drop the price of the Xbox 360 Elite to $299.99 in the United States, just days after Sony Corp cut the rival PlayStation 3 to $299 from $399.

Analysts have said the cuts will pressure Nintendo Co Ltd to lower the price of its best-selling Wii console, which retails for $249, but for now the company is standing firm.

"We don't have such a plan," Nintendo spokesman Yasuhiro Minagawa said when asked about a price cut.

Among this generation of game consoles, the Xbox is No. 2 in the United States behind the Wii. But U.S. sales of the Xbox are up 17 percent this year, the only console to show growth.

The price on the entry-level Xbox Arcade model will stay at $199.99, and Microsoft will phase out its mid-range Xbox Pro model, leaving it with two models. The Pro will sell for $249.99 until supplies run out.

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Posted at 12:09PM Aug 28, 2009 by Lou Wallace in Entertain  |  Comments[0]