Microsoft is making a bold move by reducing its Xbox 360 console price again just in time for the holidays. Although the core system lacks a hard-drive which reduces your ability to save content and go online, for AU$299 ($196.99 US), it will allow you to play Gears of War 2.

It's also $100 cheaper than the Wii, and it's 57% cheaper than the PS3 model which sells for AU$699 ($460.38 US).

Microsoft has also cut their Premium Console's price at AU$399 ($263.13 US); and the Elite, which features the larger hard-drive, at AU$549 ($361.97 US).

This is sure to benefit holiday sales for Microsoft as they have a strong line-up of exclusive titles, whereas Wii in comparison, lacks DVD playback; has limited online functionality with inferior technology; and costs consumers $100 more?

It makes you ponder at what cost Microsoft is committed to reign supreme regardless of cost or loss they make on console sales? Or is this just a flicker of a showdown for the holiday price wars?

Source