Microsoft will dramatically cut the price of its Xbox 360 family of consoles in Japan in a bid to remain competitive in the region.

As of September 11, the price of the Xbox 360 Arcade will be reduced by almost 30 percent, from 27,800 yen to 19,800 yen, making it cheaper than Nintendo's 25,000 yen Wii, Microsoft announced on Monday.

The Elite 360 will also see a 17 percent price cut from 47,800 yen to 39,800 yen.

The Japanese Xbox website confirms price cuts for Xbox 360 hard drives and memory units too, and appears to indicate that the 20GB 360 will be discontinued when existing stock dries up, while an Associated Press report on CNN Money says that the 60GB 360 previously released in Europe and the US will be introduced in Japan for 29,800 yen.

"Xbox 360 will become more fun and easier to use," said Takashi Sensui, head of Xbox Japan. "It will also become more affordable.

“We have set the prices with hopes more people will be able to enjoy Xbox 360," he added.

In late August Microsoft announced that it had run out of Xbox 360s in Japan following a week of almost unparalleled sales success for the system in which moved just shy of 25,000 units, more than Sony’s PS3 and PS2 combined. However, the Xbox 360 continues to lag far behind Nintendo's Wii and Sony's PS3 in terms of average weekly sales in Japan.