Microsoft’s Xbox 360 will now be available at even sub $ 200 prices. The price of the Xbox 360 Arcade has been reduced to $ 199. The standard Xbox will be available for $ 299 and the Xbox Elite will cost $ 399.

The basic aim of the present price cuts is to compete with Sony. Market analysts feel that $ 200 is a psychological mark and a number of buyers will be willing to buy the console for lesser than this mark. The Xbox Arcade accounts for only 20 percent sales. However with this price cut Microsoft hopes to increase the sales substantially.

It is believed that with this strategy Microsoft may closely rival sales of Sony. But Wii by Nintendo will still remain the market leader.