Microsoft lowers XBox 360 price

The Xbox 360 will be $50 cheaper starting Wednesday, confirming leaked advertisements posted by bloggers in July.

Microsoft said its most popular console, which comes with a 20-gigabyte hard drive, will cost $349.

A basic console without a hard drive or wireless controllers will retail for $279, $20 less, while the Xbox 360 Elite, a black version with a 120-gigabyte hard drive and high-definition video support, will drop $50, to $449.

Microsoft has been dodging questions about a price cut since its competitor Sony slashed the price of its 60-gigabyte PlayStation 3 to $499, from $599, in July. The Nintendo Wii, the least expensive of the so-called next-generation consoles, costs $250.

Aaron Greenberg, a group product manager for Xbox 360, said in an interview Monday that the ads were real. He also said competitors’ prices had no impact on Microsoft’s decision.

Microsoft also said Tuesday that the green and gold 'Halo 3'-themed console, will go on sale in September for $400.