The cost of a Kinect has dropped to $109.99 from its original price of $149.99.
The new price will go into effect starting today for North America, Latin America and Asia Pacific. It will then extend to Australia and New Zealand on October 4.
Microsoft added that there are currently no plans for a change in price for Kinect in Europe or Japan.
Rumours suggest that Microsoft is planning an upgraded Kinect 2 for its next Xbox console. Kinect 2.0 is said to feature improved tracking and dedicated processing, and come with better play space and high definition.