Xbox 360 price cuts begin down under

Microsoft confirmed today that it was dropping the price of its entry-level Xbox 360 by $50...in Australia.

As Microsoft's Australian gamers' site clearly shows today, the 360 Arcade bundle has been dropped from AU$399 to AU$349, the Xbox 360 Pro has been cut from AU$579 to AU$499, and the Elite has been cut from AU$729 to AU$649 -- on average, about 14% lower than before.

At international exchange rates calculated yesterday, these prices would be equivalent in US dollars to $332.77, $475.80, and $618.82, respectively. In the States, these bundles sell for $279.99, $349.99, and $449.99, respectively.

More importantly, the Xbox 360 is now cheaper than the Sony PlayStation 3 and the Nintendo Wii in Australia.

The Xbox 360 has sold about 400,000 units in Australia, compared with less than 300,000 Sony PlayStation 3s and about 420,000 Nintendo Wiis, according to a recent chart compiled by the Web site VG Chartz.