By Melodie Warner
Nvidia Corp. (NVDA) slashed the price of its Android-based game console Shield to $299 from $349, just ahead of its launch, in an effort to attract more gamers.
The company joined Microsoft Corp. (MSFT) this week in making a significant change between the original unveiling of its new videogame device and the launch in order to make it more attractive to consumers.
For its part, Nvidia is best known for making chips and circuit boards that help computers and videogame consoles generate visual effects. Over the years, the company has expanded into making chips for mobile devices and first announced its Project Shield effort in January.
The console, which is available June 27, is powered by Nvidia's Tegra 4 chip and features a five-inch, high-definition multitouch display, speakers, Wi-Fi and the Jelly Bean flavor of Android. It also has 16 gigabytes of memory, GPS, Bluetooth, HDMI output, microSD storage slot and a headphone jack.
"We've heard from thousands of gamers that if the price was $299, we'd have a home run," said Jason Paul, product line manager of GeForce GPUs in a blog post Thursday.
Those who pre-ordered the Shield will be charged the new, lower price when the product ships.
Microsoft, meanwhile, said Wednesday it would reverse some unpopular policies it recently announced for its coming Xbox One videogame console. The company said it would no longer require its Xbox to connect to the Internet each day, nor would it restrict how its videogame discs are traded, resold or rented.
Nvidia reported last month its fiscal first-quarter earnings rose 29% as revenue climbed 3.2% and margins improved.
-Ina Fried contributed to this report.
Write to Melodie Warner at melodie.warner@dowjones.com
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