Microsoft Australia have dropped the price on all versions of the Xbox 360, just in time for Christmas and the launch of the Xbox dashboard update due out on the 19th of November.

The price drops sees the entry level Arcade pack coming in at an RRP of $299 (a drop of $50), with the standard and Elite dropping $100 off the RRP and coming down to $399 and $549 respectively.

Full release from Microsoft is as follows:

SYDNEY 11 November 2008 -Microsoft today has lowered the price of the Xbox 360^TM video game and entertainment system in Australia to a starting price of AU$299.00 RRP* - less than half the RRP price[1] of the next cheapest hi-definition console in the country.

With Christmas just around the corner, all Xbox consoles will come with complimentary games for a limited time at participating retailers.

"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," said Jeremy Hinton, Xbox group product marketing manager, Australia and New Zealand. "Xbox 360 is the cheapest next-gen console on the market[2], 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," added Hinton.

Microsoft is dropping the price of their entire Xbox 360 console range.

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

The Xbox 360 offers a collection of over 300 games, with more titles than any other games console. The power of Xbox LIVE also connects over 14 million people worldwide to the things they love - from game demos, hundreds of multiplayer games and other downloadable content.

"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," added Hinton.

The full contents of the three entertainment systems are:

• 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.

* Recommended retail prices only at participating retailers. The price consumers actually pay will be determined by the retailer.

So just in time for Christmas eh?