Microsoft is to cut the UK price of its Xbox 360 Elite gaming console by £30 to £199.99 and by $100 to $299 in the US.
It comes in the wake of Sony's decision to drop the price of its PlayStation 3 to £249 in the UK and $299 in the US.
The price of Xbox's entry-level model the Arcade will rise to £159.99 from £129.99 - although its US cost remains the same at $199.
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