Microsoft's Xbox 360 has become the least-expensive of all current generation game consoles following price cuts announced in Australia early Wednesday.

The base-model of its game station has been slashed to $349, putting the console $50 less than Nintendo's competing Wii game system, priced at $399.

The rest of the Xbox 360 range also received price cuts, with the both the Xbox 360 Pro and top-of-the-line Xbox 360 Elite prices down $80 to $499 and $649 respectively.

We've got a track record showing that whenever possible we want to pass on savings to the consumer, Xbox Group Marketing Manager Jeremy Hinton told theage, an Australian publication.

Microsoft's announcement has come as Xbox 360 sales trail behind those of the Nintendo Wii and Sony's Playstation 3.

The new pricing plan will only apply to sixteen selected retailers across Australia, according to Microsoft.