The news currently applies only to the US and Canada, where consumers are now able to pick up the 20Gb Xbox 360 for $299, a drop in price of $50. A new 60Gb model will launch in both regions in August, priced $349.
We presume the price cut and 60GB will also apply to Europe, but we'll just have to hang tight and wait for confirmation and dates, which may come at Microsoft's keynote speech later today (8pm GMT, 1pm ET).
It's rumoured that Microsoft will also use E3 to showcase a remote motion sensing controller, as well as a new look 3D-style dashboard for Xbox live users.
Meanwhile Sony is rumoured to be making a number of key announcements at E3, including a motion-sensing controller, full details of its upcoming movie download service and new details of its PS3 trophy system.
Nintendo’s keynote speech will apparently focus on a range of upcoming first party games. The Japanese manufacturer has already stated that there will be several new titles announced that will be aimed specifically at the hardcore gamer. It’s also believed that it will announce an online version of the successful life simulation videogame, Animal Crossing.
Stay tuned for coverage from E3.