According to Taiwanese tech news site Digitimes, Microsoft will cut prices of their Xbox 360 consoles quite soon. They’ve negotiated price reductions with various equipment manufacturers in Taiwan, and can probably lower prices by 15-20% just thanks to the fact that parts have gotten cheaper.

Microsoft may want to lower prices by Christmas in order to provide a nice incentive for the fairly expensive PlayStation 3. Also, they could be thinking of bundling the external HD DVD drive with the console at $399, but that probably wouldn’t make sense since the drive is rumored to cost around $199 by itself.

Microsoft rumored to cut Xbox 360 price by US$100 [Digitimes via Kotaku]