Microsoft (NSDQ: MSFT) has announced a cut in prices for the xBox 360 for the festive season: they’ve cut the price of the xBox 360 core to Rs. 14,990 (around $375). Remember, the core had been launched in India at a price of around $429. MS is trying to sweeten the offering with games: Forza Motorsport 2 and Viva Pinata are being given free with the console. Not much change in the Xbox 260 pro pricing - Rs. 23,990 (around $600), instead of the launch price of around $515, but MS is giving four games as well PGR3, Forza Motorsport 2, Viva Pinata and Yuvraj Singh International Cricket 2007. So, unlike what the story here says, the games don’t appear to be free, only subsidized.

MS had also launched an Xbox Entertainment Lounge in Mumbai, earlier this month, at The MobileStore in Mumbai. Something we’d missed out on - MS is also renting games via online DVD rental co SeventyMM.