Microsoft has announced today that all models of its Xbox 360 will receive a price cut in the States. The premium model will now retail in the territory for $349.99 (£173), the core at $279.99 (£138) while the brand spanking new black Elite machine will weigh in at $449.99 (£222). Bitter? Jealous? Us...?

The price drop has been timed to coincide with EA’s Madden NFL 08 American Football title and the company said that this reduction will ensure the console will now cater for “all interests and budgets”.

Along with the price drop announcement Microsoft confirmed that the Xbox 360 Halo 3 Special Edition Console will hit store shelves in September with an ERP of $399.99 (£197). the machine comes in a fetching "Spartan green-and-gold finish," and includes (a rather gauche) matching Xbox 360 Wireless Controller, Xbox 360 20GB hard drive, Xbox 360 Headset, and an Xbox 360 Play and Charge Kit.

As yet there have been no announcements of a price cut in the UK and Europe but it seems likely that there will be some form of announcement in the run up to Christmas to compete with rival PlayStation 3’s fast-selling ‘starter pack’. At least there'd better be.