Microsoft has confirmed it's cutting XboX 360 prices. The new prices, along with the Halo 3 launch set for 25. September, should help boost XboX sales just in time for the back to school frenzy.

There have been a lot of rumors about new XboX prices, ever since Sony dropped its Playstation prices. The cheaper XboX was doing pretty well compared to Sony's PS, but there's still the tiny Wii to fight against. In fact, Wii has outsold its rivals put together.

The XboX Premium goes down by $50, to $349, the Core is $20 cheaper at $279 and the Elite will cost you $449, a drop of $30. This will bring the cheapest XboX pretty close to the $250 Nintendo. Analysts believe that Nintendo won't be lowering Wii prices any time soon, due to high demand and supply issues.

More here.