The Xbox One is now available starting at $350, thanks to a temporary price cut that went into effect on November 2. This price drop was a “big move” for Microsoft as it relates to competing against the rival PlayStation 4, according to Phil Spencer, who is Head of Xbox.

“The pricing that’s going to run through the holidays is a big move for us. I think it’s a good time for us to go in, and, let’s just say it–compete,” Spencer said during the latest Major Nelson Radio podcast.

The PS4 has sold more than 13.5 million units to date, according to the latest data from Sony. Microsoft has not shared Xbox One sales data as frequently as Sony has, though sales of Microsoft’s latest system are believed to be north of 5 million units.

The $50 Xbox One price cut announced last week is good on all systems, including the special-edition bundles that include copies of Sunset Overdrive, Call of Duty: Advanced Warfare, and Assassin’s Creed Unity. The price drop also makes the Xbox One less expensive than the PS4 (which starts at $400) for the first time.

We’ll get an idea about how effective the $50 price cut was for Microsoft either when the company shares sales data or in December when the NPD Group announces its video game sales report from the month of November.

Also in the podcast, Spencer said the $50 price drop was planned “months” in advance of the rollout on November 2, so that Microsoft could coordinate with retailers across the United States. Overall, Spencer said he’s optimistic about the value the Xbox One offers this holiday.

“The diversity of what we’re bundling, the different consoles that are there, getting to reduce the price by $50 across all of the different consoles, I think is a great opportunity,” he said. “And it’s a good time. It’s a good time to be a gamer.”

For even deeper Xbox One savings, Microsoft has rolled out a new promotion where you can get a brand new Xbox One for $250 if you trade in a working Xbox 360 or PlayStation 3 at a Microsoft Store.

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