SAN FRANCISCO (Reuters) -- Microsoft Corp. is slashing the price of its high-end Xbox 360 model by $100, ratcheting up the stakes in the game console fight this holiday season.

Microsoft (MSFT, Fortune 500) will drop the price of the Xbox 360 Elite to $299.99, it said Thursday, just days after Sony cut the rival PlayStation 3 to $299.

The price on the entry-level Xbox Arcade model will stay at $199.99, and Microsoft will phase out its mid-range Pro console, leaving it with two models. The Pro will sell for $249.99 until supplies run out. The global price cut is effective Friday.