Microsoft is slashing $100 off the price of its Xbox One gaming console, as well as letting users use apps such as Netflix and ESPN without a $60 fee. Microsoft is hoping to increase sales as the console war against rivals Sony and Amazon heats up. Microsoft will now sell the Xbox One for $399, or $499 with a "Kinect" motion sensor, starting on June 9. The software giant is lagging Sony's PS4 in sales and faces competition from existing consoles and streaming boxes such as Apple TV and Amazon's new $99 gaming-and-entertainment Fire TV. The Xbox One console has sold over 5 million units as of April 17.

More from Video

Video: nLight Shares Surge Following Nasdaq Debut

Video: nLight Shares Surge Following Nasdaq Debut

Too Bearish Too Soon? Your Reality Check from Real Money's Helene Meisler

Too Bearish Too Soon? Your Reality Check from Real Money's Helene Meisler

Jim Cramer: Visa Is a Technology Company That Masquerades as a Financial Company

Jim Cramer: Visa Is a Technology Company That Masquerades as a Financial Company

Jim Cramer: Chipotle Shares Are Probably Done Going Down

Jim Cramer: Chipotle Shares Are Probably Done Going Down

Jim Cramer: This Is a Sad Time for Southwest Airlines

Jim Cramer: This Is a Sad Time for Southwest Airlines