Microsoft has slashed prices on its Xbox 360 console across the hotly contested Asian market.

In light of recent news that Nintendo has no intentions of dropping their prices on the Wii or DS consoles anytime soon, it appears Microsoft may be using its price drops to get a one-up on their rivals.

The price of the 20GB model has been cut by between 5% and nearly 20% in four areas throughout the Asian region. Singapore came in top with a drop of 19.5%, followed by Taiwan (17%), Hong Kong (10.7%) and South Korea (5%).

Two other models have been reduced as well, the 120GB Elite by 12.5% and the Arcade, which has no hard drive, by 13%.

However, as Microsoft were dropping prices, Sony went in the opposite direction, raising prices in Singapore for its 40GB PlayStation 3 to $394 (about £200).

"This price drop is part of Microsoft's ongoing strategy to bring Xbox's high-definition gaming and entertainment experience to an even wider user base", Microsoft said in a statement.

The move follows Xbox 360 price reductions up to 28% in some European markets last month.