Microsoft to end Xbox One price cut on Jan. 3

After a surge in holiday sales, Microsoft is planning to end a price cut on its Xbox One gaming console January 3.

When Microsoft lowered the Xbox One's price to $349, few expected it to return to the $400-$500 range it had hovered at since its launch last year. That will change on Saturday, when the limited time promotion ends, the company said Monday.

The Xbox One will return to its pre-promotion price of $399 for the non-Kinect bundled version and $499 for the Xbox One bundled with Kinect. Both bundles include the games Assassin's Creed IV Black Flag as well as the new Assassin's Creed Unity.

Those looking to take advantage before it expires can find some deals before the $50-off promotion ends on Saturday. Best Buy, Amazon, Target, and GameStop will be throwing in an additional $50 gift card to their respective stores with the purchase of either Xbox One bundle, while Newegg will be offering a $20 gift card plus a one-year subscription to Xbox Live Gold.

The promotion has worked well for Microsoft. The Xbox One was the top selling game console on Black Friday and outsold the PlayStation 4 in November.

Follow Eli Blumenthal on Twitter@eliblumenthal