August 27, 2009

SINGAPORE -(Dow Jones)- Microsoft Corp. (MSFT) is lowering the price of the high-end model of its Xbox 360 gaming console by $100 starting Friday amid mounting pressure on console makers as the videogame industry's sales continue to struggle.

Microsoft, in a statement dated Wednesday, said prices for the Xbox 360 Elite console will be lowered to $299.99 starting Friday. The device comes with a 120 gigabyte hard drive.

Microsoft also said it will lower the price of the Xbox 360 Pro model, which has a smaller hard drive, to $249.99 from $299.99 while supplies last. The price of the Xbox 360 Arcade model, which does not come with a hard drive, will remain at $199.99.

The Xbox 360 Pro model will be phased out once current supply runs out, leaving the Elite and the Arcade as the two models for the console.

The announcement follows a fall in videogame hardware and software sales stemming from the economic downturn, which has increased pressure on console makers to cut prices before the holiday season. According to NPD Group, industry sales for hardware and software in the U.S. in July were down 29% from the same month a year ago.

Source:-http://money.cnn.com