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Microsoft unveils Japanese Xbox 360 price cut

New retail price makes the arcade console the cheapest in the region's market

Microsoft has announced it will slash the price of its Xbox 360 in Japan by about 30 per cent, in an effort to drop the price below that of the Nintendo Wii and Sony PlayStation 3.

The company will lower the price of the Xbox 360 Arcade model by JPY 8,000 yen (USD 73.92) to JPY 19,800 (USD 182) from JPY 27,800 (USD 257), reported AFP. The new price will make the console cheaper than the Wii at JPY 25,000 (USD 231), or the PS3 at JPY 39,800 (USD 369). Microsoft will also be reducing the price of its core and elite models by JPY 5000 - JPY 8000 (USD 46 - USD 74).

The Xbox 360 has lagged behind its rivals in the region, which predominantly prefers both Sony's and Nintendo's consoles. However, last month, the Xbox 360 managed to outsell the PS3 in Japan to the point of selling out, following the release of Namco Bandai's Tales of Vesperia.

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