Microsoft could be cutting Xbox 360 prices by about 30 percent in Japan, putting the low-end Xbox 360 Arcade below rival consoles from both Sony and Nintendo, according to Japanese electronics trade publication Nikkei [registration required.] Microsoft will lower the price of the Xbox 360 Arcade from ¥27,800 ($256) to ¥19,800 ($182) in an effort to drum up sales to catch the Wii's 6.67 million Japanese install base and PS3's 2.32 million units. Microsoft, having sold less than 700,000 units in Japan, is said to be extending the cuts to the higher end Pro and Elite models, and will drop prices between ¥5,000 to ¥8,000 ($46 - $73).

UPDATE, 7:20 AM EST: Microsoft has confirmed the cuts, and is pricing the Xbox 360 Pro, including 60GB hard drive, at ¥29,800 (roughly $277) while the Xbox 360 Elite now goes for ¥39,800 (about $369.) New pricing takes effect September 11.

[Via Reuters]