E3 2010: Xbox price drop

With the brand new Xbox 360 already on its way to North American retailers and set for a UK launch on July 16th, Microsoft has confirmed that existing models will see a $50 price drop in the US.

In addition, in a media roundtable following last night’s conference the platform holder confirmed that it has already stopped production of all older models.

The new machine, which includes in-built 802.11n wi-fi and a 250GB HDD, will cost $299 – the same price that consumers were until yesterday able to pick up the 120GB Xbox 360 Elite for.

From today the Elite will retail for $249, with its cheaper cousin the Arcade dropping from $199 to $149. The hope is that the lower price will be enough to tempt some consumers to shun the new machine in favour of clearing the older units from the channel.

With the new console’s UK launch still over a month away, it will be interesting to see what tactics both the platform holder and retailers employ on this side of the Atlantic.