Microsoft chief Steve Ballmer has refuted claims that the recent Xbox 360 price cut is a sign of a console maker desperate to regain lost sales traction.

Asked by The San Jose Mercury News if Microsoft cut the price because it had "run out of ideas to boost sales," Ballmer replied, "No, that"s the craziest thing I"ve ever heard anybody say. All consoles start at higher prices. They always come down through the long cycle."

During the interview, he called Xbox 360 an "unqualified success," adding, "The product is selling very well. The Xbox is an absolute home run."

Microsoft cut the price of the entire Xbox 360 hardware lineup in early September, dropping the low-end Xbox 360 Arcade to Kris Graft99, which is $50 cheaper than Nintendo Wii. The high-end 120GB Xbox 360 Elite retails for $399.

Sony"s 80GB PS3 retails for $399.

After the price drop, Microsoft said sales improved over 100 percent weekend to weekend.

Prior to the price drop in the U.S., Xbox 360 had been selling around 50,000 units per week on average.

The exec said, "If you ask me, Xbox Live is going gangbusters. The console is selling well."

Ballmer also called Microsoft"s other major products--Vista, Mediaroom and Office 2007--"unqualified successes."