Just as rumored, Microsoft slashed the price of its Xbox 360 console to $299.99 yesterday. The cut applies to the version of the system that comes with a 20GB hard drive, wireless controller, wired headset, network cable, and component video cable. Stores like Amazon and Best Buy have already started selling the console at the new, lower price.
There's a catch, though. As Shacknews reports, Microsoft has announced a new Xbox 360 with a 60GB hard drive to replace the 20GB model at $349.99. The 20GB system will remain available only "while supplies last," which could leave Xbox 360 pricing pretty much unaltered once stocks run out. The nature of this price cut might explain why the Xbox 360 Arcade will remain priced at $279.99.
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