Microsoft is to sell a cheaper version of its Xbox One console, unbundling the motion sensing Kinect controller from the system to cut costs.

The company also said it would make access to entertainment apps such as Netflix, currently restricted to subscription-paying Xbox Live Gold members, open to all Xbox users, breaking down yet another obstacle for the firm.

Available from June 9th, the new option will set gamers back €,399 instead of the current price of €499. A separate Kinect peripheral will go on sale later this year for Xbox One owners who later decide they want the controller.

"The vision we have had for Xbox One continues, and that is that the premium experience is with Kinect," Yusuf Mehdi, Xbox vice president for strategy and marketing, said in an interview.

The move narrows the gap between the console and its Sony PlayStation 4 rival, which has outsold Microsoft's console in a fiercely competitive games market. Sony has sold more than 7 million PlayStation 4 consoles worldwide, with Microsoft at 5 million, according to the most recent figures.

It also marks another u-turn for the company, which has already altered its policies that could have hindered the trade-in and secondhand games market.