Microsoft will slash the price of its Xbox 360 video game console in Japan by almost 30 percent to try to boost sales amid tough competition from rivals Sony and Nintendo. The US software giant will cut the price of the Xbox 360 Arcade model to 19,800 yen (U.S $182) from 27,800 yen, undercutting Nintendo's Wii which has a price tag of 25,000 yen.

The announcement was made today at a media briefing held in Tokyo.

Microsoft also announced a 60GB version of the Xbox 360 that will retail in Japan on the 11th of September for 29,800 yen.