Microsoft is expected to lower the price of its Xbox 360 game console by $50 next month.
It's not known if the price cut will affect all models, or just the core Xbox 360 machine, which currently sells for about $300.
The price cut is expected to go into effect on August 8.
Microsoft's move comes two weeks after Sony cut $100 off the price of its Playstation 3 gaming system.
It says sales of the Playstation 3 have jumped 135 percent since the price drop.
However, sales of the Playstation 3 and the Xbox 360 still fall short of Nintendo's Wii game machine.
The price cut is expected to go into effect on August 8.
Microsoft's move comes two weeks after Sony cut $100 off the price of its Playstation 3 gaming system.
It says sales of the Playstation 3 have jumped 135 percent since the price drop.
However, sales of the Playstation 3 and the Xbox 360 still fall short of Nintendo's Wii game machine.
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