Microsoft releases cheaper Xbox

The move is to boost flagging sales of the console as rivals Nintendo and Sony prepare to release their next generation efforts.

Microsoft has failed to penetrate the Japanese market, only flogging 158,000 units when there is no competition. Vole hopes that bringing the price down will help.

The Japanese Xbox 360 console will hit the shops on November 2 and come without the 20-gigabyte hard drive and other accessories included with the standard version. As a result it will be $86 cheaper than the normal Xbox360.

Players don't need a hard drive to run most Xbox 360 games, unless they want to save games midway. If they do then they can get around this problem by splashing out on a memory stick for $27.

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