Xbox 360 holiday bundles to compete with Wii U, PS3

Microsoft is gearing up to compete against the new PS3 and the Wii U for holiday sales.And retailers may be the key to helping it achieve that goal. As the only company not releasing a new or at least enhanced version of its video game system, Microsoft faces stiff rivalry for the holiday shopping dollars.

A number of special Xbox 360 holiday bundles are likely to catch the attention of gift buyers for the next couple months.

Already hitting store shelves at places like Best Buy and Walmart are special packages. For example, an Xbox 360 with Forza 4 and Elder Scrolls: Skyrim, along with a one month Xbox Live Gold subscription has shown up for $300.

In addition, Microsoft is likely to be promoting its Kinect bundle which comes with the motion-sensing camera and 4 GB of memory for the same $300.

The Wii U is priced at $300 – $350, and the PS3 has a $250 – $300 price range. No one is going to win the holiday sales based on price, so it has to be an all-out marketing effort to create the most hype.

Of course the Wii U will get the most attention, but supply will also be extremely limited. As a result, the real battle will be between Sony and Microsoft. Because Sony is actually launching new hardware, it has a leg up, but Microsoft can always appeal to the spirit of the season with special bundles and offers.