Microsoft drops prices for Christmas, Xbox from $199

As the holidays approach, you know that your kids are going to start pestering you to buy them games, and lots of them. If they don’t yet have an Xbox 360, Microsoft has made it just that much easier for you to grab one.

From October 4, Microsoft is dropping the price of its Xbox 360 and Kinect, saving as much as $150 from what the consoles were priced at last week.

The main console will still be available in two configurations, with the 4GB Xbox 360 dropping from $249 to $199, and the 250GB Xbox 360 dropping from $449 to $299.

Microsoft’s motion-gaming Kinect accessory will also benefit from the price drop, now going for sale at $149 (down from $199), while the 4GB Xbox 360 package that features the Kinect will cost $299, down from $399.

Microsoft Kinect: if you don't have it yet, you can bet your kids want it.

“The Xbox has never been more affordable and it continues to evolve to offer even more value for Australians,” said Kimberley Francis, Microsoft Australia’s Head of Interactive Entertainment.

“Coming later this year the Xbox will continue to deliver new innovative experiences with the launch of Xbox SmartGlass and Internet Explorer on the console, transforming the way people access and consume content on their televisions and other devices like their phones and tablets.”

The price drop is likely a response to Sony’s redesign and price drop of the PlayStation 3, which happened recently and meant anyone could pick up a PS3 for $299. Both consoles do more than just play games, so the price shifts should appeal to anyone, with each console supporting catch up TV from services such as SBS and ABC.