SEATTLE - MICROSOFT Corp plans to cut US prices of its Xbox 360 videogame machine, lowering the price of its entry-level console to US$50 (S$72) below Nintendo Co Ltd's top-selling Wii, BusinessWeek reported on Wednesday.

In an article on its website, the magazine said the company will cut prices for its entry-level Xbox 360 Arcade to US$199 from its current price of US$279. It plans to announce the price changes on Friday, the report said.

It will also cut the prices of its mid-range and high end Xbox 360 consoles by US$50 each, according to BusinessWeek.

Microsoft was not immediately available for comment. -- REUTERS