Microsoft today confirmed a price drop for all models of the Xbox 360 gaming console, happy news for gamers who have yet to acquire Microsoft’s next gen system. The Xbox 360 Elite system, with its 120 GB hard drive, will drop to 399.99 USD from 449.99 USD; the Pro System, which now includes a 60 GB hard drive, will drop to 299.99 USD from 349.99 USD; the Arcade System, which does not include a hard drive but does come with a 256 MB memory card, will drop to 199.99 USD from 279.99 USD. All prices were effective Friday, September 5. This now places Microsoft with the lowest next gen system on the market.

Microsoft recently discontinued production of the Pro system with a 20 GB hard drive, replacing it with the 60 GB hard drive. In order to sell out the remaining stock of 20 GB systems, Microsoft had lowered the price on them to 299.99 USD a few months ago.

The price drops are hoped to increase console sales in a market that has been somewhat lackluster for Microsoft in the last month or two. Microsoft’s console was outsold by both Nintendo’s Wii and Sony’s PS3 in August.

This price drop comes at an excellent time for gamers, as many game developers and publishers are ramping up their best titles for release between now and Christmas. The wealth of upcoming titles such as Star Wars: The Force Unleashed, Saints Row 2, The Last Remnant, Gears of War 2 and many other titles should also help push console sales.

- Patty Estill