The price war in the gaming industry is just about to spread like fire. Reliable industry sources are known to have said that Microsoft will be reducing the price of the Xbox 360 from the existing $ 349 to $ 299.

This price cut is likely to be implemented before the video game trade show E3.
Microsoft announced the previous price cut about a year earlier during August 2007, when the prices were dropped from $ 399 to $ 349. This time around there were rumors that prices in the European Market will be cut down. However the same did not materialize.
In the instant case it is expected that the prices may be slashed down for the most popular 20 GB model. If the price cut works out it will give the Xbox 360 an edge over its arch rival, Wii by Nintendo. Some advertisements are also believed to have leaked out. The industry experts say that the price cut is a strategy to propel the Xbox 360 in an advantageous position just before the slew of games likely to be released in the coming months.