Xbox 360 sales double after price drop, says Microsoft

Microsoft on Thursday was quick to remind cohorts that price drops work, days after the company slashed the price of the Xbox 360 for a second time last Friday.

According to Microsoft, retailers saw a 100 percent surge in Xbox 360 sales last weekend compared to the previous one. Starting last Friday, Xbox 360 prices were cut US$50-80 depending on the model.

"At $199, Xbox 360 is now not only the most affordable next-generation console available, but it also packs more entertainment punch per dollar than any other consumer electronics device connected to your TV," Microsoft said in a statement.

The boost couldn't have come at a better time for Microsoft. In the first half of the year, monthly sales of PlayStation 3 have overtaken Xbox 360 for second place in the console war, which has been largely dominated by Nintendo Wii since its release in 2006.