Microsoft has announced a price reduction for its Kinect peripheral in the US, with drops in other territories to follow.

The new Kinect price is US$110 (AUD$105), which represents a 27 per cent drop.

According to Microsoft, the Kinect sensor will be available for a permanently reduced price in Australia and New Zealand on October 4.

As for how much it will cost, the company declined to comment.

A brand new Kinect currently costs around AU$199, so a 27 per cent drop would see it priced at around AU$145.