The rumors of a price cut eventually turned out to be true. Microsoft announced the reduction of price of the 20 GB model from $ 349 to $ 299. This price cut was timed to to coincide with the release of a number of game titles.

However what was not disclosed along with the rumors is that Microsoft will be releasing another model. The XBox 360 60 GB version will be costing $ 360. It has significantly more space than its predecessors for storing the games, TV shows and movies that Microsoft markets through XBox live.

Other versions, the XBox Elite and Xbox 360 Arcade continue to cost $ 280 and $ 450. It may be of interest to note here that Sony as well as Nintendo have not reduced the prices of the PS3 and the Wii.
Microsoft is also expected to tie up with Netflix Inc for streaming movies and TV episodes to the Xbox through a high-speed Internet service offering by Netflix Inc. The deal is expected to be announced at the video game conference in Los Angeles.