Microsoft said it would cut the Japan price of its Xbox 360 game gear by 13 percent to 34,800 yen ($305) on Nov 1 in a bid to shore up demand for the console struggling in a home turf of Nintendo and Sony .
The move follows a Sony announcement earlier this month that it would cut the price of its PlayStation 3 game machine by 10 percent in Japan and launch a new, lower-priced model.
The new Xbox 360 price compares with a 39,980 yen price tag for an upcoming PS3 model with a 40-gigabyte hard disk drive, which will go on sale on Nov. 11.
Although popular in the United States and Europe, the Xbox 360 has been lagging behind Sony's PS3 and Nintendo's Wii in monthly sales in Japan.
In the first half of calendar 2007, Microsoft sold 122,565 units of the Xbox 360 in Japan, compared with 1.78 million units of the Wii and 503,554 units of the PS3, according to game magazine publisher Enterbrain.