Microsoft announced an Xbox 360 console with triple the storage space of the original console, but for the same price of $349 (U.S.) estimated retail price.

Available in retail stores in the U.S. and Canada starting in early August, the upgraded Xbox 360 will include a 60GB hard drive. In addition, Microsoft dropped the price of its 20GB Xbox 360 console in the U.S. and Canada to just $299 (U.S.) (ERP) while supplies last, a savings of $50.

"We know consumers need more and more space to store the amazing digital content Xbox 360 offers, and we?re giving it to them at no extra charge," said Albert Penello, Xbox director of product management at Microsoft. "No one device offers the depth and breadth of entertainment that Xbox 360 can deliver, and now you?ll have three times the storage to manage all that great content."

Xbox 360 is just one of three Xbox 360 gaming and entertainment systems Microsoft offers. Microsoft?s Xbox 360 Arcade, which comes with a 256MB memory unit and five Xbox LIVE Arcade games, is a value for the whole family for $279 (U.S.) (ERP), and the premium Xbox 360 Elite console is available with a 120GB hard drive for $449 (U.S.) (ERP).

Out of the box, the Xbox 360 console is equipped with a cool white finish and three powerful core processors capable of producing the best in high definition (HD) entertainment (up to 1080p for gaming), 16:9 cinematic aspect ratio, anti-aliasing, full surround sound, and high-definition multimedia interface (HDMI) output.

With an HDMI cable (sold separately), you can watch watch your favorite DVDs in near high-definition using the upscaling capabilities of Xbox 360.

Microsoft last cut the price of the Xbox Pro in August, from $399 to $349, prior to the release of "Halo 3" the following month.

A cut to $299 makes the Xbox 360 Pro $100 less than Sony 's PlayStation 3 with a 40GB hard drive. Recently, Sony' chief financial officer Nobuyuki Oneda said that the company had no plans to reduce PS3's price, in an effort to concetrate in the profitability.

Nintendo's $249 Wii is still in short supply at many retailers, making a price cut hard to swallow.