Xbox 360 Price Cut Confirmed For Canada, New Model In August

The rumoured Xbox 360 price drop has finally been announced by Microsoft today, one day before their E3 press conference. As anticipated, the 20GB Xbox 360 will be reduced in price by $50, with a new retail price of $299. The Arcade and Elite models will not be receiving price cuts. Also announced is that the 20GB model is being replaced by a 60GB version, which will go on sale in Canada in early August. The 60GB model will retail for $349, the same price the 20GB model was before the cut.

Here's the full press release from Microsoft:

Redmond, Washington—Microsoft is giving consumers more gigabytes for their buck. The company today announced an Xbox 360® console with triple the storage space of the original console, but for the same price of $349 (U.S.) estimated retail price.

Available in retail stores in the U.S. and Canada starting in early August, the upgraded Xbox 360 will include a 60GB hard drive for storing the growing wealth of digital entertainment available for the console, including music, movies, television shows, and game content. In addition, Microsoft today dropped the price of its 20GB Xbox 360 console in the U.S. and Canada to just $299 (U.S.) (ERP) while supplies last, a savings of $50.

"We know consumers need more and more space to store the amazing digital content Xbox 360 offers, and we're giving it to them at no extra charge," said Albert Penello, Xbox director of product management at Microsoft. "No one device offers the depth and breadth of entertainment that Xbox 360 can deliver, and now you'll have three times the storage to manage all that great content."

Xbox 360 is just one of three Xbox 360 gaming and entertainment systems Microsoft offers. Microsoft's Xbox 360 Arcade, which comes with a 256MB memory unit and five Xbox LIVE Arcade games, is a value for the whole family for $279 (U.S.) (ERP), and the premium Xbox 360 Elite console is available with a 120GB hard drive for $449 (U.S.) (ERP).