Microsoft has confirmed that the 20GB Xbox 360 console has received a $50 price cut to $299, and taking its place in the $349 tier is a new 60GB console arriving early August. The Xbox 360 Arcade (i.e. no HDD) will continue to sell for $280 and the Elite (120GB) model will sell for $449.

We wouldn't blame if you if you felt this was old news: rumors of the 60GB model date back to mid-June and it seems like every major retailer confirmed the price cut in the last week. Now if only someone can explain to us why anyone would continue to buy the HDD-less Arcade model when you can get a 20GB hard drive for only $20 more