Microsoft slashed the price of its high-end Xbox 360 video game console by $100 stepping up the price war in the video game console market.

In Aug. 28, the price of an Xbox 360 Elite console dropped by $100, now priced at just $299.99 estimated retail price (ERP) in the United States. On top of that, the Xbox 360 Pro console is priced at $249.99 (ERP), reflecting a price reduction of $50, while supplies last.

"If you?re looking for deep experiences that don't require deep pockets, now is the time to purchase an Xbox 360. We've got the best games, a vast library of TV shows and movies, new music experiences, more ways to connect friends and family, and so much more on the horizon including 'Project Natal' - no controller required, said Shane Kim, corporate vice president of strategy and business development for the Interactive Entertainment Business at Microsoft Corp.

Among this generation of game consoles, the Xbox is No. 2 in the United States behind the Wii. But U.S. sales of the Xbox are up 17 percent this year.

Microsoft claims the price cut was in the works for some time and was not a response to Sony's cut for the PS3.