Microsoft unveil a cheaper version of its Xbox 360 in Japan in an attempt to make inroads into the game-loving nation that has shunned the console.

Microsoft will put the Xbox 360 Arcade on sale March 6 at a price of 27,800 yen (260 US dollars), less than the 34,800 yen for the current machine.

Unlike the standard Xbox 360, the Arcade version has no hard drive. It comes with games -- mostly family-friendly ones appealing to casual gamers -- with other games downloadable from the Internet.

The Xbox has been a flop in Japan, home of video-game rivals Sony and Nintendo which together have a lion share on their main market. The XBox 360 Arcade, released last year in North America, is just above the 25,000-yen price tag of Nintendo's hot-selling Wii, which includes an innovative motion-sensitive controller and aims at non-traditional gamers.

A mere 260,000 Xbox 360 machines were sold in Japan last year, three times fewer than the last-generation PlayStation 2

By: DocMemory
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