Sales of the Xbox 360 in Japan have been struggling, so Microsoft is looking to lower the price for its Arcade version to boost sales, according to the Associated Press. The price will be cut 20 percent, from 34,800 yen ($325) to 27,800 yen ($260).

Microsoft’s Arcade version is $269.99 at most retailers in the U.S., but sales haven’t been as tough for the American company.

In Japan, sales haven’t looked too bright for Microsoft since it entered the console market, mainly because Sony and Nintendo hold up well in the market as Japanese companies.

Only 260,000 Xbox 360s were sold in Japan in 2007, while the Nintendo Wii and the PS3 sold 3.63 million and 1.21 million in 2007 respectively.

Worldwide, the story has been very different, with Microsoft selling 17.7 million Xbox 360s so far and Sony’s Playstation 3 far behind at 10.5 million. The ever popular Nintendo Wii has sold more than 20 million worldwide, with sales still increasing.

A price drop may reach America next, depending on how the 360 performs in 2008.

Source: Yahoo News