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The Microsoft Xbox 360 appears to be on the skids with consumers deserting the console in droves for the Nintendo Wii and the Sony PS3.

In Australia Microsoft has refused to pass on price reductions afforded US buyers – a move which does not seem to paying off for the company following the news that the console, which has suffered from the “Red Ring Of Death” in the past, falling out of the top 20 best-sellers at Amazon.com’s Computer & Video Games division following a rapid rise to the top of the charts last week when Microsoft introduced price cuts of up to 15 percent.

Early this week the Xbox 360 ranked as the No. 21 best-selling item in the Computer & Video Games division. It reached the No. 1 sales rank last Thurs. when Microsoft price cut all Xbox 360 models by $20 to $50.

Additionally, Amazon held an extra $20 discount late last week to boost sales at the online retailer. While the Premium SKU fell out of the top 20 products, the Xbox 360 Elite SKU held the No. 10 rank as of Mon. morning.

This week, Amazon is offering an Xbox 360 high-def bundle that includes an Xbox 360 Elite, HD DVD Player, and seven HD DVD titles for $599. In the same division, Nintendo Co.’s Wii ranks at No. 1 and Sony Corp.’s Playstation 3 ranks at No. 6. Microsoft has sold 5.6 million Xbox 360 units to date.

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