In a move to spur sales of the Xbox One and catch up with rival Sony's PlayStation 4, Microsoft says it will start selling the console without the Kinect sensor, which cuts $100 from the price.
The new price of $399 begins June 9.
Microsoft says it is also allowing entertainment apps like Netflix, Hulu Plus, YouTube and HBO Go to be used without having to pay for an Xbox Live Gold membership, which costs $60 a year. CNET reports that a LiveGold subscription will also not be needed for some premium services such as OneGuide, Internet Explorer and Skype.
The membership will continue to be required for multiplayer games but will also provide discounts on games and free games.