Well, folks it’s official.  Microsoft officially announced today that the Xbox 360 Elite will see a price cut of $100 on August 28th, taking it from $399.99 to $299.99.  Of course, this news is no surprise since we saw an almost endless array of leaked flyers from major retailers depicting the price slashing.  The Xbox 360 Pro, though, will see a $50 price reduction until they run out of stock.  The Arcade system will remain at $199.99, which leads me to believe that Microsoft will introduce some sort of robust bundle for the holidays that we heard murmurs about a few months ago.

In terms of Project Natal news, Microsoft said that “the Xbox 360 you buy today will work with code-named “Project Natal” and controller-free gaming in the future.”  I wonder if that means some of the older Xbox 360s won’t be compatible?  Microsoft, you might wanna clarify.

So will you go out and purchase a new Xbox in light of the price cuts?  I bought mine from Costco, so assuming they adopt the new lower price I’ll be returing mine for a straight trade to the Elite system.  When I first purchased my Xbox 360 Pro edition, I assumed 20GB would be enough, but now that you can copy games to the hard drive and download full blown games 120GB is a neccesity.

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