It has also reduced the price of the XBox 360 250GB Kinect by 8.3 per cent to Rs 31,990.
"We are committed to offer great experiences to our consumers at compelling price points. This price drop on 250GB Skus, coupled with our recently launched Xbox Live Gold Rush promo, will provide great value to our community of fans and gamers," Microsoft India Director (Interactive Entertainment Business) Anshu Mor said in a statement.
These consoles were earlier available for Rs Rs 24,990 (250GB) and Rs Rs 34,890 (Kinect), the statement added.
The consoles are currently available in the market with additional freebies like free games and Xbox Live Gold membership.
The price drop, however, is limited to the 250GB Xbox consoles and does not extend to the 4GB Xbox 360 and 4GB Kinect.