Xbox 360 Elite: $449.99 (was $479)
Xbox 360 Premium: $349.99 (was $399)
Xbox 360 Core System: $279.99 (was $299)

The Halo Xbox 360 console price was also announced, which will be $399. Read more on the Halo Xbox 360 console here. Other regions besides the US will get a price drop soon. A system update (Dashboad update) was also released for the Xbox 360. The update was to enable the use of wireless guitars on the Xbox 360. Nothing beyond that.

Read the full announcement below.

Full announcement:

Microsoft Lowers Xbox 360 Price

Redmond, Washington—Microsoft today kicked off the greatest holiday lineup in videogame history by announcing it will reduce the retail price of Xbox 360™ by $50 beginning August 8 at United States retailers nationwide. Soon to follow, Electronic Arts Inc. (EA) will release its blockbuster video game title Madden NFL 08 on August 14. This important mass-appeal franchise was the top-selling game of 2006 and is the top-selling franchise of the past 10 years. Only Xbox 360 offers a console for all interests and budgets.

"The fact that we have been able to keep our launch price longer than any other console while retaining our leadership position demonstrates that consumers believe in the value of Xbox 360," said Mitch Koch, corporate vice president, Global Retail Sales and Marketing Group, Entertainment and Devices Division at Microsoft. "On the eve of the best holiday games lineup ever, and the launch of Madden NFL 08, there has never been a better time to jump into Xbox 360."

Family of Consoles
Xbox 360 will enhance the value of its entire family of consoles beginning on August 8. At a new price of $349.99, Xbox 360 offers an unsurpassed experience right out of the box with a 20 GB hard drive, Wireless Controller, Xbox 360 Headset, and more.

If you're looking for the ultimate value and the freedom to customize your console as you see fit, Xbox 360 Core System now has an estimated retail price of $279.99. Xbox 360 Core System provides everything you need to hit the ground running, while giving you the ability to expand with new features and accessories you want.

Dressed in black and equipped with a 120GB hard drive, Xbox 360 Elite will be priced at $449.99 if you want the premium games and entertainment experience. In anticipation of this year's largest blockbuster game launch, the Xbox 360 Halo 3 Special Edition Console will hit store shelves in September with a price of $399.99. Featuring an authentic Spartan green-and-gold finish, this console includes a matching Xbox 360 Wireless Controller, 20GB hard drive, Xbox 360 Headset, 360 Play & Charge Kit, and more.

Can't-Miss Games
In addition to being a great value, Xbox 360 is the only place to play all of this year's biggest titles:

• Guitar Hero III™: Legends of Rock (RedOctane/Activision)
• Halo® 3 (Bungie)
• Madden NFL 08 (EA SPORTS)
• Rock Band™ (MTV Games)

Xbox 360 is also home to the most exclusive games:

• BioShock (2K Games)
• Lost Odyssey™ (Mistwalker/Feel Plus)
• Blue Dragon (Mistwalker/Artoon Co. Ltd.)
• Scene It? Lights, Camera, Action (Screenlife)
• Project Gotham Racing® 4 (Bizarre Creations Ltd.)
• Mass Effect™ (BioWare Corp.)
• NARUTO™: Rise of a Ninja (Ubisoft)
• Ace Combat 6: Fires of Liberation (NAMCO BANDAI Games)

With a record-setting attach rate of 6.1 games per console sold (NPD, June 2007), a new price, and the greatest holiday lineup ever, Xbox 360 has proved itself as the home of the best games and entertainment at the best value.

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