Microsoft officially drops price of Xbox 360

Microsoft dropped the price of the Xbox 360 on Tuesday to coincide with the release of Madden NFL 08. Effective Wednesday, Xbox 360 premium will sell for US$349, the Core model for US$279, and the Elite model with larger hard drive for US$449.

"The fact that we have been able to keep our launch price longer than any other console while retaining our leadership position demonstrates that consumers believe in the value of Xbox 360," said Mitch Koch, corporate vice president of Microsoft's Xbox division.

The price drop is a first Xbox 360 and unprecedented some 22 months since first launching in November of 2005. There has been no confirmation of an Australian price cut yet.

Microsoft also announced in the same release that the Xbox 360 Halo 3 Special Edition Console will hit store shelves this September at a price of US$399.99.

The company also reiterated its claim that the Xbox 360 is home to the "greatest holiday game lineup of all time" this fall including titles such as Guitar Hero III, Halo 3, Rock Band, Project Gotham Racing 4, Mass Effect, and Bioshock.

Whether or not consumers will recieve a similar price drop in Australia has yet to be confirmed.