Microsoft Lowers XBox 360 Price

Microsoft is lowering the price of its XBox 360 games console by $50, in an attempt to keep pace with rival Sony's own price cuts and introduction of a new model of the Playstation 3.

The new, lower XBox 360 suggested retail price of $349.99 goes into effect August 8. Microsoft has also lowered the price on the XBox 360 Core System to $279.99.

The company hopes to stimulate renewed interest in its games console with the Aug. 14 release of Electronic Arts's football game, "Madden NFL '08." It is also looking towards the year's most important XBox game release: the September debut of "Halo 3," the next installment of the XBox-exclusive blockbuster first-person shooter. Amazon.com currently lists the game as becoming available on September 25.

In July, Sony reduced the price of its Playstation 3 with a 60GB hard-disk drive to $499, and launched a new model with an 80GB hard-disk drive, for $599.