TORONTO (Reuters) - Microsoft Corp said late on Wednesday it will cut the prices of its Xbox 360 video-game consoles in Canada, in a continuing battle with Nintendo Co Ltd's Wii and Sony Corp's PlayStation 3 for dominance of the gaming market.

But prices in the United States will not change, Microsoft spokesman David Dennis said, adding that each market makes its own decision on the matter.

Microsoft said in a statement it would cut the price of the Xbox 360 console to C$349 from C$399, while the premium Elite model with a larger hard drive would drop to C$449 from C$499. The more basic Arcade model is dropping to $279 from C$299.

($1=$1.01 Canadian)

(Reporting by Wojtek Dabrowski; editing by Rob Wilson, Richard Chang)
© Copyright 2007 Reuters.