NEW YORK (Reuters) - Microsoft Corp. (NasdaqNM:MSFT - news) plans to drop the price of its Xbox (news - websites) video game system by $30 to $149 next month according to a story in the Wall Street Journal on Friday.

Citing people familiar with the company's plans, the Journal said Microsoft may also start selling a limited-edition Xbox packaged with its Halo shooting game, for $169.

Publishers and retailers have clamored for a price cut for the Xbox and Sony Corp (news - websites).'s (6758.T) rival PlayStation 2 (news - websites) this year, to either $149 or $129. Reuters has cited senior industry executives saying they expected price cuts by May this year