Best Buy Co. Inc. this week began offering a $200 discount with the combined purchase of Microsoft Corp.’s Xbox 360 and HDTV.

This week, can purchase the Xbox 360 4GB Kinect Holiday Bundle and a Toshiba 40-inch LED 1080p 120Hz HDTV at $699.98, $200 off the combined MSRP.

The Toshiba 40-inch LED 1080p 120Hz HDTV sells at $499.99 and the Xbox 360 4GB Kinect Bundle sells at $299.99.

Microsoft in Oct. recorded a 24 percent decline in Xbox 360 revenue from the year prior to $418 million. A total of 1.7 million Xbox 360 units shipped in the first quarter, down from 2.3 million units shipped the year prior. Xbox 360 hardware market share increased to 49 percent from 47 percent in the quarter.

In the Entertainment and Devices division, which includes the Xbox business, income fell to $19 million from $340 million one year prior.

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