Cheaper Xbox 360 coming to Japan

Microsoft has announced that it will sell a cheaper model Xbox 360 in Japan beginning on March 6.

The new model is identical to the Arcade SKU released in the US last fall, with HDMI output, a wireless controller and a 256MB memory card in lieu of a hard drive.

Microsoft's entry-level Xbox 360 will retail for JPY 27,800 (USD 260), about one-fifth less than the current price.

The company has sold 17.7 million Xbox 360 consoles worldwide, but refuses to give a regional breakdown. Even so, analysts say that the console is struggling in Japan against the Wii and PlayStation 3.

According to an AP report, Tokyo-based Enterbrain says only 257,800 Xbox 360 consoles were sold in Japan last year in contrast to 1.2 million PS3s and 3.6 million Wiis.