Microsoft slashes US Xbox prices

Microsoft is cutting the US price of its Xbox 360 gaming consoles.

The move will mean that the basic model will cost $199 (£112) – cheaper than the best-selling Nintendo Wii. It said that prices for the other Xbox models will drop by $50.

The cut also means that the entry level Xbox 360 is about half the recommended price of a PlayStation 3.

The US cut follows a similar move in Japan. Microsoft said it had no plans to lower European prices further.

Read more: news.bbc.co.uk