We've seen price cuts in Australia and Asia over the past few months, and now Microsoft has unveiled a price cut in America and Canada on the Xbox 20GB model.
The news follows confirmation of the new Xbox 60GB model, scheduled to go on sale in August for $349 (around £175).
The price of the current 20GB model has now been reduced to $299 (about £150).
"We know consumers need more and more space to store the amazing digital content Xbox 360 offers, and we're giving it to them at no extra charge", said Albert Penello, Xbox director of product management at Microsoft.
"No one device offers the depth and breadth of entertainment that Xbox 360 can deliver, and now you'll have three times the storage to manage all that great content."
The other two Xbox SKUs will remain at the same price - the Arcade unit for $279 and the Elite for $449.