Now, both the Xbox 360 Elite and the PS3 will cost $299. The price cuts in both cases are worldwide, though the exact amounts vary by region depending on currencies.
Microsoft, which has had three versions of its Xbox 360 available at three different prices, also was to announce Thursday it is phasing out the mid-range, Pro, version of the console. It will be available for $249, down from $299, while supplies last.
The cheapest Xbox, the Arcade, which comes without a hard drive, will still cost $199.
The price cuts are effective Friday, said David Dennis, a spokesman for Microsoft.
Video game companies hope the price cuts will re-ignite sales in time for the holiday rush. For the bulk of this year, the industry has suffered from weak sales — hurt by the recession and lackluster game releases, which have kept consumers waiting to spend money on new titles.