Microsoft has slashed the price of the Xbox 360 console in the US to under $200 in the run up to Christmas making it $50 cheapers than the Nintendo Wii.
Starting from Friday 5 September, the company's entry-level console, the Xbox 360 Arcade will be sold for $199.99.
Microsoft will sell the Xbox 360 console for $299.99 and Xbox 360 Elite for $399.99.
According to Microsoft the move is like to prompt a smash and grab mentality from consumers across the US.
"History shows that more than 75 percent of all console sales happen after the price falls below the $200 mark", the company said in a statement hoping it becomes true as it tries to fight Sony and Nintendo in the console wars.
There is no word as yet to whether or not UK customers will be getting the price drop announced in the US on Wednesday.
At current exchange rates it would mean the console would be around £111 compared to the current Amazon.co.uk price of £149.99.
In the past, Microsoft has been slow to pass on the price savings to UK customers.
We will keep you posted.