Microsoft To Start Selling Xbox One for $399

May 13, 2014 04:46 PM EDT | Jordan Ecarma

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Likely in the hopes of besting its PlayStation 4 rival, Microsoft has slashed $100 from the price of the Xbox One video game console and has also nixed the $60 "Live" subscription required to view Netflix and other apps.

The Microsoft console has been falling behind Sony's PS4, which debuted around the same time as the Xbox One, and also faces new competition from Amazon's recently launched Fire TV set-top box, reported.

The company announced Tuesday that the Xbox One's price will drop to $399 starting June 9; the console will also be available with a "Kinect" motion sensor for $499.

"That's going to appeal to our fans on Xbox 360 who have been excited to try Xbox One but, because of affordability options, haven't had the opportunity," Yusuf Mehdi, Xbox vice president for strategy and marketing, told Reuters. "So we think that's going to grow the market."

The Xbox One and PS4 consoles have been competing since they both launched in time for the holiday season. As of last month, Microsoft has reported sales of more than 5 million Xbox One consoles, while Sony's PS4 has sold more than 7 million units in about the same period.

Microsoft debuted the new video game title "Titanfall" in March, gearing its launch toward boosting Xbox One sales.

Titanfall, which Microsoft has been marketing since last June, has a first-person perspective and takes users through an urban battlefield. Players in the game direct  "Titans," which are machines similar to robots that can be programmed to fight.

In February, Sony declared its new PlayStation 4 was the bestselling video game console for the month, reporting sales that were double those of Microsoft's Xbox One.

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