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(Pocket-lint) - 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.

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Microsoft has not said whether this price reduction will appear in the UK also. On Amazon.co.uk 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

Writing by Luke Edwards.