Microsoft has performed an about-face on an earlier statement that it had no plans to cut the Xbox’s price in Japan, and lowered the Core console’s cost to ¥27,800 (£120/€172/$244).

It's also cut the standard model's cost from ¥39,795 to ¥34,800 (£150/€215/$306), with all new prices taking effect from 1 November.

In July, a spokesman for Microsoft Japan said that Xbox prices in the country were very competitive and that it didn’t have any plans to cut the console’s price there at that time.

However, Sony announced earlier this month it would cut the prices of its 20GB and 60GB PS3s in Japan. The company also unveiled its 40GB PS3 last week, which goes on sale in Japan on 11 November.