As we expected, Microsoft has dropped the price on Kinect bundle to $299 from $349 for the Xbox 360 4GB Kinect bundle. While the drop has yet to hit everyone, it was apparently confirmed to retailers on September 15th, according to our sources.

While some tell us the move was in response to Sony’s $50 price cut, we have been told that this really had little to do with it and this has more to do with Microsoft wanting to sell more systems and encourage those buying to go with a Kinect bundle package.

We had heard that this was only a North American price drop, but now we are hearing that the price cut is also occurring in other regions. While we continue to hear that Microsoft might make additional pricing adjustments, no one seems to know when they will come or how soon. Microsoft does want to maximize console sales this holiday season, and the question is if they will cut prices to do so.