Just in time for Christmas, Microsoft have today announced that they're slashing the price of the Xbox 360 in Australia - to a base price of AU$299 (RRP) - less than half the price of its hi-definition rival, the PlayStation 3. This is the second major price drop in less than six months - and comes just before the launch of "the new Xbox experience", the overhauled downloadable interface due next week.

To further sweeten the deal, for a limited time, every Xbox console sold will come with complimentary games, if you buy it from the right place. While the Pro and Elite both come bundled with LEGO Indiana Jones and Kung Fu Panda, the Arcade doesn't miss out, happily packaged up with SEGA Superstars Tennis and five Live Arcade titles.

Xbox group product marketing manager, Australia and New Zealand, Jeremy Hinton explains the move:

“Gaming is set to be one of the hottest categories this year. Consoles are a great gift for the whole family. Now that we’re making gaming even more affordable Australians can have more fun for less this holiday. Xbox 360 is the cheapest next-gen console on the market, has the biggest number of next-gen games and it’s the home of Xbox LIVE, the largest social network on TV.”

“The Xbox 360 also has an amazing line up of games this festive season including Lips, Fable 2, Gears of War 2 and Guitar Hero: World Tour, making it a great present for the whole family.”

Prices for all three current Xbox consoles have been dropped, and we have this handy-dandy table for you to compare:

Xbox 360 Range	New RRP	Previous RRP	Saving
Xbox 360 Arcade	$299	$349	$50
Xbox 360	$399	$499	$100
Xbox 360 Elite	$549	$649	$100

But what's actually in the packs?

• Xbox 360 Arcade (RRP AU$299.00):
  Great for those looking to hit the ground running and allow consumers to customise as they wish. Includes the Xbox 360 video game console and entertainment system, wireless controller, and composite AV cable, 256MB Memory and Xbox LIVE 5 Arcade 5 game compilation disc including Pac-Man Championship Edition and UNO.
   
• Xbox 360 (RRP AU$399.00):
  With a 60GB hard drive it’s a LIVE-ready experience for fans of interactive entertainment. Includes the Xbox 360 video game console and entertainment system, 60GB hard drive, Wireless Controller, Xbox 360 headset, component High Definition AV cable and an Ethernet Connectivity Cable.
   
• Xbox 360 Elite (RRP AU$549.00):
  For those looking for a premium experience the Elite offers twice the storage of the Xbox 360 and a stylish black finish. Includes the black Xbox 360 Elite video game and entertainment system, 120GB hard drive, wireless controller, Xbox 360 headset, component HD AV cable, HDMI cable, an Ethernet Connectivity Cable and a complimentary 30-day trial Xbox LIVE® Gold membership.

Currently boasting the biggest games library than any other console, the Xbox 360 also boasts Xbox LIVE, connecting more than 14 million people to game demos, online multiplayer, and other downloadable content.

Mr. Hinton is well familiar with these new downloads, and the one he's most excited about is the new Xbox experience: “At the end of the month Xbox owners will be able to download a new user interface for their consoles, effectively updating the console. The New Xbox Experience is cleaner and more user-friendly and will allow users to create online parties, chat with friends, share pictures, create avatars of themselves and much more.” So. At a much happier price point, the Arcade Xbox 360 (the most popular model) is still cheaper than a Wii, and even the Pro model with its 60GB hard drive is now matching Nintendo's motion-sensing console. I predict a number of large boxes under Christmas trees - and finally, they're not all from one publisher. Sony's PlayStation 3 is still somewhat on the outside looking in, with its AU$699 price point proving too much to swallow for many families.

All prices listed are recommended retail prices and are correct at time of publishing. The price consumers actually pay is determined by the individual retailer and may vary.