Confirming rampant rumors, Microsoft has announced  that the 20GB version of the Xbox 360 has had its price cut to $299 from $349. However, the $349 spot will now be taken over by a new 60GB model, which was previously rumored as well. The new model will go on sale in North America early next month.

While the 20GB model is being phased out in favor of the 60GB one, the price cut makes it a very lucrative deal for gamers, as the console is now essentially $100 cheaper than the PS3.

Sony has gone on record to state that there won’t be any price cuts to the PS3 this year. Nintendo is also unlikely to make any cuts.