Microsoft today announced a price drop for the XBox 360 video game and entertainment system in Australia. The console will now start at an RRP of $299 (for the Arcade version), making it 50 per cent cheaper than the PlayStation 3. The XBox 360 Pro and Elite editions have been slashed by $100, and will retail for $399 and $549, respectively.

For a limited time, each console will also come with complimentary games. The Xbox 360 Arcade will come bundled with SEGA Superstars Tennis. The Pro and Elite editions will comes with two games: LEGO Indiana Jones: The Videogame and Kung-Fu Panda.

“Now that we’re making gaming even more affordable Australians can have more fun for less this holiday”, said Jeremy Hinton, Xbox group product marketing manager for Australia and New Zealand. “Xbox 360 is the cheapest next-gen console on the market [and] has the biggest number of next-gen games.” This is the second significant price drop for the XBox 360 in recent months, following a similar announcement in August.

The Xbox 360 Arcade includes a wireless controller, composite AV cable, 256Mb memory unit and Xbox LIVE 5 game compilation disc, including Pac Man Championship Edition. The Xbox 360 Pro includes a 60GB hard drive, Xbox 360 headset, component high-definition AV cable and an Ethernet cable. The Xbox 360 Elite includes a 120GB hard drive, wireless controller, Xbox 360 headset, component HD AV cable, an HDMI cable, an Ethernet cable and a complimentary 30-day trial Xbox LIVE Gold membership.