Sony announced yesterday that a new, entry level 40GB PS3 will launch in Europe next week. The price of the 60GB version will also be lowered, however only until supplies last it turns out. But apparently Microsoft will have their own deals lined up to attract the holiday shopper. Jauxvideo writes that their sources have informed them of Microsoft’s intentions to release three new bundles this year.

First is the Arcade Pack which will include a core system, wireless controller, 256MB memory card, 5 Arcade games, a DVD with demos, and a one year of subscription to Xbox Live. This new bundle will sell for €279.

Second is the Premium Value Pack, including the Premium console with two games, Forza Motorsport 2 and Viva Piñata, for €349.

And third is a Call of Duty 4: Modern Warfare bundle. For €385, you’ll get the Premium console and the game itself.

All three bundles are set to go on sale starting November 3rd. Remember, there is no official confirmation for this information at this time but it only makes sense that Microsoft will make some changes to their offerings to win over holiday shoppers. Whether or not these are the exact changes, we’ll just have to wait and see.