Microsoft drops price of Xbox 360 'while supplies last'

Those hoping for an Xbox 360 price drop will get one, Microsoft said on Sunday. But it's more of a clearance sale than actual price cut.

Starting today, gamers will be able to purchase a 20GB Xbox 360 for $299 "while supplies last," meaning that Microsoft will soon replace the discounted system with the newly announced 60GB model. The news was widely expected since early July.

Once the old inventory of 20GB models has been flushed, prices will return to the current lineup of $349 for the 60GB Premium model, $279 for the Arcade version (without hard drive), and $450 for the 80GB Elite model. The new 60GB model will be available starting in August.

The news marks the second time this generation that a console maker has opted for a clearance sale of older models instead of a true price drop. Last year, Sony dropped the price of the discontinued 60GB PS3 from $499 to $399, only to introduce a larger capacity machine for $499.

This story, "Microsoft drops price of Xbox 360 'while supplies last'" was originally published by GamePro.

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