Microsoft has recently announced that the price of its X-Box 360 console will drop $50 on Wednesday, August 8. The most popular version, which comes with a 20-gigabyte hard drive, will go down to $349, which is no doubt a significant decrease for consumers.

The gaming package that comes with no controllers or hard drive will drop $20 to $279, while the X-Box 360 Elite (which comes with a 120-gigabye hard drive and advanced graphic features) will drop down to $449. This decrease may be a move to combat rival competitor Sony’s recent price cut of its PS3 unit. With the PS3 now selling at roughly $499 and the Nintendo Wii at $250, it is no question that Microsoft is looking to stay in the game by hopefully drawing in more customers.

Microsoft denies that the price cut was a move caused by its rivals. The company has claimed that the recent reduction is coming at a time when some of the top titles are about to hit the shelves, including Madden NFL 2008. Well many may find the move by Microsoft a bit shocking, it should be noted that it is normal for companies to cut the price of their gaming consoles after they have been on the market for a couple years.

Microsoft hopes that the reduction will target more consumers who originally did not purchase an X-Box 360 for financial reasons.