Microsoft has announced a price drop on all Xbox 360 models in Japan in an effort to boost sales overseas.

The Arcade will be seeing the biggest change, dropping from 27,800 yen to 19,800 and putting the 360 Arcade at $182, which is less than the Nintendo Wii's price tag of 25,000 yen.  The PlayStation 3 currently goes for 39,800 yen, which converts to $369.

Two other Xbox 360 models will also be seeing price changes, said the Nikkei business daily news.

The recent price cuts might help Microsoft compete against Sony and Nintendo, whose firm footholds in Japan still present an obstacle for the American company.  However, Microsoft managed to outsell Sony in units last month with the release of Namco Bandai's Tales of Vesperia, putting the 360 ahead of the PlayStation 3 for the week ending on August 10.

The Nintendo Wii remains well ahead of both the Xbox 360 and PS3 in terms of sales.