20GB Xbox 360 phased out for 60GB 360

The rumor about the 60GB Xbox 360 was on the mark. Starting this August, North America will see another Xbox 360 SKU in stores, a 60GB Xbox 360 for $349. That's the same price as the current 20 GB Xbox 360 package, which will drop $50 to $299 until the remaining inventory is cleared out. Microsoft has no plans to apply the $50 discount to the Xbox 360 Elite or the Xbox Live Arcade model. Now the $20 cheaper, hard drive-less Xbox Live Arcade model looks like an even worse deal compared to the discontinued 20 GB Xbox 360. No plans were announced for other regions, but I wouldn't expect Microsoft to keep producing 20 GB Xbox 360 for the rest of the world.

Images courtesy of Microsoft.