While it was already hinted at by a couple of the bigger retailers, it looks like Microsoft's finally gone official with their Xbox 360 price cut. The company has released a press wire stating that the console's 20 GB model will now be selling for just US$ 299.

While that's probably been expected, the bigger news of the press release is their announcement of a new Xbox 360 SKU which will carry a 60 GB HDD. This unit will also carry the 20 GB unit's original price of US$ 349. Albert Penello, Microsoft's Xbox director of product management had this to say regarding the company's big announcement:

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. 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.

While the price-reduced 20 GB bundle is expected to arrive this week, you may also want to keep on the lookout in case the stores start stocking up on the new SKU. With this said and done, it'll be interesting to see how Sony will reply to the announcement, or what sort of actions they'll plan to take in the months to come. Drop by again in case we receive any more news.

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*Update*
Microsoft's recently clarified during an inquiry that the price cut and new model are currently for North America only. Quoting their official statement to Spong:

The 60GB Xbox 360 and the 20GB clearance sale are for the US only. We have not announced any changes in Xbox 360 offerings or pricing in Europe.

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• Leaked pictures: impending Xbox 360 price drop at GameStop *update*