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Microsoft Takes $50 Off Xbox 360

Coinciding with the launch of Electronic Arts' "Madden NFL 08" football game, Microsoft is cutting the price of its main Xbox 360 console by $50 Wednesday to $349 in the U.S. Rumors of the price cut had leaked, but some thought that Microsoft wouldn't cut its price before the late-September release of "Halo 3," which is expected to drive demand for new consoles.

Aaron Greenberg, group product manager for the Xbox 360, says the price move is not a reaction to Nintendo's Wii, but it hopes to bring in consumers who have an Xbox or PS 2. He maintains that the Xbox 360 has a lot of content that can appeal to broader audiences, such as the "Scene It?" movie trivia game and the new "Guitar Hero III" game.

Greenberg says that the delay of "Grand Theft Auto IV"--announced last Friday--will strengthen the appeal of exclusive Xbox 360 titles, such as "Halo 3." The ball is back in Sony's court to cut the price of the $600 PS 3.

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