From 29 August 2009, the price of an Xbox 360 Elite console with 120GB hard drive will drop by R1 500 to R3 399 (ERP).

Xbox 360 puts all your entertainment in one place so you can play games and watch movies from your Xbox 360, and as announced earlier this year, the Xbox 360 bought today will work with code-named "Project Natal" and controller-free gaming in the future.

"With the Christmas season right around the corner, it's already time to start looking for entertainment and gifts that everyone will enjoy," said Chris Lewis, vice president Interactive Entertainment Business at Microsoft Europe.

"We have a goal over the next 18 months to reinvent entertainment in the living room and we want to ensure that we have the right foundations in place for our consumers to make simple informed choices around their entertainment platform."

"We know that price is a critical influencing factor in consumer choice, but we also know that consumers across Europe are looking for value, benefit and entertainment experiences, so we need to address all these points to continue to grow and be successful in Europe."

The price reduction on an Xbox 360 Elite coincides with a re-alignment in the Xbox console strategy across Europe and in South Africa, ensuring that at all price points Xbox 360 represents the best value for money in next generation gaming in each marketplace.

With the premium console of Xbox 360 Elite at a new price point of R3399 aligned with R2499 for Xbox 360 Arcade, the pricing structure provides clear choice, differentiation and value at both an entry and premium levels of Xbox 360.

The Xbox 360 Pro with a 60GB hard drive will be phased out across South Africa.