Xbox 360 Price Cut Spurs Sales

Microsoft last week was quick to remind cohorts that price drops work, days after the company slashed the price of the Xbox 360 for a second time last Friday.

According to Microsoft, retailers saw a 100 percent surge in Xbox 360 sales last weekend compared to the previous one. Starting last Friday, Xbox 360 prices were cut US$50 to $80 depending on the model.

"At $199, Xbox 360 is now not only the most affordable next-generation console available, but it also packs more entertainment punch per dollar than any other consumer electronics device connected to your TV," Microsoft said in a statement.

The boost couldn't have come at a better time for Microsoft. In the first half of the year, monthly sales of PlayStation 3 have overtaken Xbox 360 for second place in the console war, which has been largely dominated by Nintendo Wii since its release in 2006.