Microsoft cuts console price

Microsoft has triggered a price war by cutting the cost of its Xbox 360 games console.

The £30 reduction brings the price of its cheapest console to £129, undercutting rivals Sony and Nintendo.

Nintendo's popular Wii sells for £179, while the cheapest version of Sony's Playstation3 sells for £299, more than double the new price of the Xbox. Fraser Macdonald of gadget magazine Stuff said: "This is without doubt the start of the Christmas price war."

According to the latest sales figures from research firm VG Chartz, the Wii is the UK market leader with 3.7 million consoles shipped against 2.5 million for the Xbox 360 and 1.5 million PS3s.

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