Microsoft announced that its Xbox 360 will drop down in price to be more competitive against Sony’s PlayStation 3 and Nintendo’s Wii.

Click to enlarge

Xbox’s 360 Kinect Bundle

The RRP for the Xbox 360 console with the Kinect bundle will experience a $50 drop in price. The Kinect bundle is available in two variants: one with a 4GB hard drive and another with a 250GB. The 4GB bundle will retail for $399, while the 250GB variant will cost $499.

Kinect bundles come with a Xbox 360 console, a standard controller, a Kinect sensor, a Kinect game and a one month Xbox live Gold membership.

According to XboxWorld, Microsoft will also release an entry level 4GB Xbox 360 which will have a RRP of $249.

 “With families gearing up for school holidays they will be looking for ways to keep the kids entertained, and Kinect offers something that parents and their kids can participate in together. We are pleased to now offer Xbox 360 and Kinect bundles at new lower prices, meaning Kinect and Xbox have never been more affordable,” said Andy Coughlin from Microsoft Australia.
 
The news coincides with Sony’s announcement that a white 320GB PlayStation 3 console will be available in Australia come November.

Read: Sony Release White PS3 In Time For Christmas

The 4GB box is $99 cheaper than Sony’s introductory 160GB PS3, which retails at $348.

But when it comes to standalone consoles and internal memory, Sony’s PS3 packs more of a punch. The 250GB Xbox 360 console retails for $449, while a 320 GB Sony PS3–which has added Blueray functionality–retails for $448.