Microsoft today made some changes to their pricing schemes and also announced new systems with bigger hard drives. Microsoft stated that the 20g systems will be selling for $299, a drop of $50, while supplies last. In addition new models with larger hard drives in the 60g and 120g will also be offered. The costs for the larger systems will be priced at:

The company today 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. 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).

This is great news for gamers who will get more bang for their buck and also a less expensive system priced more closely to the PS3 and Wii models. I think Microsoft is going to benefit by lowering prices and will be more competitive with the other gaming console offerings. In real estate it is location, location, location. In the console market it is price, price, price. 🙂

What do you think? Will this help to increase Microsoft sales?

Comments welcome.