The console war is constantly heating up as Microsoft announced their response to Sony's recent price cut of the PlayStation 3. Starting this week the different editions of Xbox 360 are now $50 cheaper than before. Microsoft however denies that the price adjustment had nothing to do with Sony's offering, and said that it is due to the upcoming releases of big titles like Halo 3 and Madden NFL 08.

Microsoft has announced that it will slash the price of its Xbox 360 video game console by $50, starting this week. The most popular console, which comes loaded with a 20-gigabyte hard drive will now cost $349.

You can now also pick up a basic console without a hard drive or wireless controllers for $20 less, at $279. If you feel like shelling out a bit more cash for the Xbox 360 Elite, which comes with a 120-gigabyte hard drive and high-definition video support, that will now run for $449, a $50 price cut.

Some stock watchers think the release of "Halo 3" could make Microsoft some cash, tipping the Xbox effort into the black for the fiscal year that began July 1. The video game has attracted a devoted following that waits eagerly for the next installment of the franchise.

Source: Forbes.com