Microsoft Australia announces Xbox 360 Price Drop

Microsoft Australia have announced a slew of price drops for the Xbox 360 today with reductions in the RRP reaching up to $150 off previous pricing. A 4GB Xbox 360 will now only set you back just $199 - or you can get a 4GB Xbox 360 and a Kinect for $299. The 250GB Xbox 360 has had even more knocked off its RRP and from tomorrow you can pick one up for $299 - giving punters a choice between 246GB HDD space or a Kinect. Sort of like a choice between an ice cream sundae or a kick to the solar plexus.

Two weeks ago Sony announced their new, even slimmer version of the PlayStation 3, so it's no surprise Microsoft hit back with this. Naturally, they are also still eager to sell the Kinect too - and what with games like Fable: The Journey, Nike + Kinect Training and no doubt a bunch of dance games, some people might see it as worthwhile.

What about you? People tend to value a decent price drop over a change in hardware - would you grab a cheaper Xbox 360 over the new PlayStation 3, or vice versa? Sony offer a decent amount of goodies once you make the leap, but is the leap worth it? Alternatively, Microsoft have a huge amount of very popular games on the XBLA this year with Mark of the Ninja, Minecraft, that Fez thing and Trials Evolution. Will you be picking up a new console in the near future - and which one? Let us know in the comments below!