Microsoft has announced another price drop for its Xbox One console.

In a bid to keep up competition with Sony's PS4 the price of the Xbox One was dropped back in October to $349. But then it jumped back up to $399 on 3 January. And now Microsoft has announced it will go back down to $349 once again – perhaps after not selling enough consoles at that higher price during January sales.

Microsoft has not said whether this price reduction will appear in the UK also. On the Xbox One is currently priced at £299 without the Kinect system while Sony's PS4 is £325.

When the Xbox One launched it was over £100 more than the current price, although that was with the Kinect sensor included. The PS4 was £349 when it initially went on sale in the UK.

The PS4 has never deviated in price - adding bundles instead of lowering the cost to the consumer. But Microsoft has enforced numerous bumps downwards for its machine in order to compete with a Sony console that is seemingly striving further away in unit sales.

Since this US price has merely gone back down to where it was before we don't expect that £299 UK price to get any lower anytime soon.

READ: Xbox One price drops below PS4 for the first time, now £330